NZD/USD hits 0.7200 mark for the first time since June 2015

The NZD/USD pair is seen extending its upward trajectory for seventh straight trading session and has now risen to a fresh yearly high level of 0.7200 handle.

Support leaning towards 'Remain' camp at today's UK-EU referendum continue to boost global risk-on trade and is denting demand for safe-haven assets. Increasing investor risk appetite is weighing on the US Dollar and is assisting the NZD/USD pair to continue with its bullish momentum. Moreover, higher commodity prices also seem to extend support to commodity-linked currencies - like the kiwi.

Global financial markets will now keenly await for the final outcome of the Brexit vote, which is expected to hit the wired early UK time on Friday. In the meantime, traders would confront the release of weekly unemployment claims, flash manufacturing PMI and new home sales data from the US, later during NA session.

Technical levels to watch

Momentum above 0.7200 level is likely to get extended towards June 2015 highs resistance around 0.7223-25 area. With daily RSI reading above 70, already pointing towards near-term over-bought conditions, any further up-move is likely to be restricted by 0.7250 level resistance.

Meanwhile, any profit-taking move from current levels seems to find immediate support around session through level near 0.7160-55 area, below which the pair seems to drift back towards 0.7100 handle before extending its slide further towards a previous strong resistance, now turned important support, near 0.7040 horizontal zone.