NZD/USD weaker below mid-0.7400s, showing signs of topping out

The NZD/USD pair traded with mild negative bias through early European session on Thursday and extended previous session's retracement from fresh 10-month tops. 

The pair stalled its recent appreciating move and in absence of any fresh development, today's slide could be solely attributed to some profit taking. A mildly positive tone around the US Treasury bond yields was seen lending some support to the US Dollar and weighing on higher-yielding currencies - like the Kiwi.

Meanwhile, the recent price action, since last Friday, has been indicating lack of any strong follow through buying interest. With fresh supply re-emerging on every up-move towards 0.7375-80 region, today's minor retracement could be the first signs of bullish exhaustion. A follow through weakness back below the 0.7300 would reinforce the expectations that the pair might have topped out in the near-term.

Today's second-tier US economic data - weekly jobless claims, Philly Fed Manufacturing Index and CB's Leading Index, would now be looked upon for some short-term trading opportunities. 

Technical levels to watch

Immediate support is pegged near 0.7315-10 region, below which the pair is likely to extend the corrective slide towards 0.7260-55 intermediate zone en-route 0.7220-15 strong support. 

On the flip side, the 0.7365-75 region remains an immediate strong hurdle, which if conquered could trigger a fresh bout of short-covering and lift the pair beyond the 0.7400 handle towards its next barrier near mid-0.7400s.