NZD/USD recovery gains traction, hits fresh session peak ahead of Fedspeaks

The NZD/USD pair's recovery, from the vicinity of 0.70 handle, gained further traction and the pair has now recovered back above the very important 200-day SMA.

Currently trading at a fresh session peak level, around 0.7045 level, the pair snapped seven days of losing streak and broad based greenback retracement, which has been the key factor driving the pair's recovery from the lowest level since July 26. 

Earlier on Friday, the pair dropped to test 0.70 psychological mark as the greenback built on to its post-US presidential election rally after the Fed Chair Janet Yellen, during her testimony, bolstered expectations of December rate-hike action and lifted the overall US Dollar Index to the highest level in over 13-years.

Hence, investors on Friday will remain focused on speeches from couple of FOMC members - William Dudley and Esther George, for fresh clues over the Fed's next monetary policy move and provide fresh impetus for the major during NY trading session.

Technical levels to watch

Immediate upside resistance is pegged at 0.7065 level above which a fresh bout of short-covering is likely to lift the pair back towards 0.7100 handle. On the downside, weakness back below 0.7020 region (200-day SMA) might now drag the pair even below 0.70 mar towards its next support near 0.6950 horizontal level.

To learn more about this topic, check our video analysis