NZD/USD jumps closer to Tuesday’s 4-week highs

After spending majority of the European trading session around 100-day SMA region, the NZD/USD pair caught fresh bids and has now moved back closer to yesterday's 4-week high.

Currently trading around 0.7225-30 band, the pair extended its winning streak for the third consecutive session and now seems to have confirmed a break-out above 0.7200 handle, coinciding with 100-day SMA important resistance. The US Dollar remained on the back-foot, amid cautious trade ahead of the Fed interest-rate decision, and has been a key factor supporting the pair's up-move on Wednesday. 

Meanwhile, possibilities of shorts covering their positions, heading into the big event risk, might have also contributed to the pair strong up-move in the past couple of hours. 

Ahead of the much anticipated Fed monetary policy decision, the pair is unlikely to react to the US macro data that includes - retail sales data and PPI, slated for release during early NA session. 

Technical levels to watch

A follow through buying interest above 0.7230 level should trigger a fresh bout of short-covering and lift the pair immediately towards 0.7260-65 resistance area ahead of 0.7300 handle. Alternatively, reversal from current levels, and a subsequent break back below 0.7200 handle (100-day SMA), would negate possibilities of any further up-move and drag the pair towards 0.7175-70 area, en-route 50-day SMA support near 0.7150 region.