NZD has been under some selling pressure against the USD and AUD
I posted earlier last week here that the NZD/USD was playing ping pong with the resistance level at 0.7030 and the support level at 0.6980.
After being rejected again on the topside on Monday, the pair is falling lower. Overnight trading saw it break below the 0.6980 level - as dairy prices fell and this morning's trade balance data certainly did not help the NZD's cause.
The pair is lower on the day and is heading for a test of the support levels near the 0.6935 level.
Looking at the AUD/NZD pair, we're also seeing the NZD being sold there as the pair is moving higher over the last few days as well. But we're testing a key resistance level at the 100-day MA now, a level that capped yesterday's move higher and a level which was rejected previously last week (as I highlighted in the link above as well).
If NZD buyers are to make a return, this would be where they make their stand - otherwise, there's still further pain in the NZD drop to come.
