NZD/USD tumbles to fresh yearly lows, slides farther below 0.6900 mark

Extending its rejection move from 50-day SMA important hurdle, the NZD/USD pair broke below the 0.6900 handle and dropped the lowest level since late Dec. 

The pair remained heavily offered for the third consecutive session and refreshed yearly lows few minutes ago amid some renewed optimism surrounding the US President Donald Trump's pro-growth economic policies. 

Against the backdrop of a range-bound action around the US treasury bond yields, a modest US Dollar recovery could be attributed to the pair's latest leg of downslide on Wednesday. 

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Meanwhile, possibilities of a follow through long-unwinding pressure, in wake of a decisive break below 0.6950 support area, seem to have further aggravated the selling pressure and collaborated to the pair's sharp slide since early Asian session. 

Today's US economic docket remains relatively light and hence, investors' attention would remain focus on Trump's expected big announcement on tax reforms. 

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Technical levels to watch

A follow through selling pressure now seems to find support near 0.6860 level (Dec. 23 low), below which the pair is likely to aim towards testing the 0.6800 handle.

On the upside, any recovery attempts beyond 0.6910 level now seems to confront strong hurdle near mid-0.6900s, which if cleared might trigger a short-covering rally towards the key 0.70 psychological mark.