NZD/USD reverses sharply from multi-week highs

Having touched a four-week high level of 0.7048, the NZD/USD pair ran through fresh offers and has now drifted into negative territory.

Currently hovering around 0.70 psychological mark, testing session low, resurgent greenback demand, with the key US Dollar Index reversing majority of its early losses, seems to be key factor exerting some selling pressure around the major. 

From technical perspective, the pair is reversing from 50% Fibonacci retracement level of 0.7237-0.6862 downslide. Moreover, with 50-day SMA crossing below 200-day SMA, occurrence of Death Cross seems visible on daily chart, suggesting resumption of the pair's near-term depreciating move. 

In absence of any important economic releases from the US, broader sentiment surrounding the greenback would remain a sole determinant of the pair's trajectory on Tuesday. 

Technical levels to watch

A follow through selling pressure below 0.70 mark (38.2% Fibonacci retracement level) is likely to accelerate the slide towards 23.6% Fibonacci retracement level support near 0.6950 region below which the pair is likely drop back towards 0.6915 horizontal support. 

Meanwhile, momentum above 0.7040-50 immediate resistance could get extended but might now be capped at an important confluence resistance near 0.7080 region, comprising of 50-day and 200-day SMAs.