NZD/USD hits fresh lows under 0.7000 as stocks drop further

NZD/USD had a short-lived recovery and is back under 0.7000 as the US dollar gians momentum amid risk aversion. Stock in Europe and in the US hit fresh lows. The Dow Jones is now falling 0.68% and the Nasdaq falls 0.70%.

NZD/USD resumes decline

The pair recover ground earlier but the upside was capped by the 20-hour moving average and the 0.7030/35 area. It turned again to the downside and recently printed a fresh daily low at 0.6992, the lowest level since last Wednesday.

It remains under pressure, trading at the lows as it continues to retreat from 1-year highs that reached last week after the Reserve Bank of New Zealand left interest rates unchanged. From last week highs it has fallen 150 pips.

Levels to watch

To the upside, resistance levels might now be seen at 0.7030 (American session high / June 13 low), 0.7060 (daily high) and 0.7080 (June 13 high). On the opposite direction, support might lie at 0.6980/85 (June 7 high), 0.6945 (June 8 low) and 0.6900 (psychological / June 6 low).