NZD/USD flat-lined around 0.7060 level, FOMC minutes in focus

The NZD/USD pair ran through fresh offers at higher level and reversed all of its tepid recovery gains to drift back into negative territory.

Currently trading near session lows around mid-0.7000s, steady greenback failed to provide any fresh impetus and the pair remained confined in a narrow trading band, just above the very important 200-day SMA.

From technical perspective, Monday's sharp recovery bounce could be categorized as a corrective bounce from near-term oversold conditions. Moreover, the pair's inability to build on Monday's recovery move and consolidation around multi-month lows clearly suggests further downside even from current levels.

Today's US economic calendar featuring the release of durable goods orders, weekly jobless claims and new home sales data would now be looked upon for short-term momentum play ahead of FOMC meeting minutes, later during NY trading session, which could be the next fundamental trigger determining the pair's trajectory in the near-term. 

Technical levels to watch

From current levels, 200-day SMA near 0.7030 region remains immediate support to defend, which if broken could accelerate the slide back towards 0.70 psychological mark before the pair eventually drops to test its next support near 0.6950 horizontal area. On the upside, 0.7080-85 region now seems to have emerged as immediate resistance above which a fresh bout of short-covering has the potential to lift the pair beyond 0.7100 handle towards its next resistance near 0.7115-20 region.

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