NZD/USD erase majority of Monday’s losses, surges to 0.7070

The NZD/USD pair's rebound from sub-0.7000 psychological mark has gained further traction, lifting the pair well above the mid-point of 0.7000-0.7100 handle to currently trade near session high around 0.7070-80 band. 

Worries surrounding the Brexit referendum and its implication on UK / global economy continued to drive investors' flight to traditional safe-haven currencies - like the US Dollar, dragging commodities and commodity-linked currencies - like the kiwi, lower on Monday. The pair dipped to nearly retest the Brexit led swing-lows but has managed to recover and erase majority of its Monday losses.

Going forward, sentiment surrounding riskier assets - like equities and commodities, might continue to drive movement in high-yielding currencies like the New-Zealand Dollar. Meanwhile, economic releases from the US that includes first quarter GDP print and Consumer Confidence for June would provide some near-term tradable move for the short-term traders.

Technical levels to watch

From current levels, 0.7100 round figure mark seems to provide some immediate resistance on the upside. Bullish momentum above this immediate resistance is likely to get extended towards 0.7160 resistance area, above which the pair seems all set to resume its near-term bullish trajectory and head back beyond 0.7200 handle, towards testing last week's daily closing highs resistance around 0.7250 region.

Conversely, should the pair starts reversing and give-up some of its recovery gains, it is likely to find immediate support around 0.7040-30 region, which if broken seems to drag the pair back below 0.7000 handle, towards testing an important horizontal support around 0.6970-65 region. A follow through selling pressure below recent swing lows now seems to open room for extension of the pair's near-term corrective move towards its next major support around 0.6850-40 region.