NZD/USD heavy, eyes a break below 0.7100

• Bears attack 0.71 handle, ignores rising oil prices.
• Sold-off for the sixth straight consecutive session on broad USD strength.

After a brief consolidative stint near 0.7120 levels during late-Asia, the NZD/USD pair came under renewed selling pressure in early Europe, now look to test the key psychological support at 0.7100 levels.

The spot is seen printing fresh three-month lows of 0.7109, in response to the ongoing bullish momentum around the US dollar versus its main peers, as the US 10-year Treasury yields consolidate near four-year peaks just shy of the key 3 percent level.

The Kiwi is the weakest across the fx board, having failed to benefit from the persisting risk-on market profile, reflected by higher equities and oil prices. In the day ahead, the pair could see further declines below a break of the 0.7100 levels, opening floors for a test of January 2018 lows at 0.7073.

Calendar-wise, the US CB consumer confidence and new home sales data will be reported among other second-liner releases, which could provide some trading impetus.  

NZD/USD levels to watch

FXStreet’s Analyst, Joshua Gibson noted: “A bullish pullback from here will see resistance at the 50.0 Fibo level at 0.7250, with a further boundary at the last swing high at the 0.7400 major handle, while a bearish continuation is largely unfettered until hitting December's swing highs at 0.7020, with further support from November's lows at 0.6790.”