NZD/USD stuck in a narrow range around 0.7150

Having faced rejection just below 100-day SMA on Wednesday, the NZD/USD pair has been confined within a narrow trading band on Thursday.

Currently trading at a fresh session low level around mid-0.7100s, the pair ran through fresh offers after NZ trade deficit unexpectedly widened in September to $1.436 billion as against 1.145 billion expected and 1.265 billion recorded in August. 

Moreover, resurgence of broad based US Dollar strength, on increasing prospects of an eventual Fed rate-hike action by the end of this year, has been a key factor driving the pair's movement in the past few weeks and is also contributing to the prevalent softer tone around the major.

Focus now shifts to US economic docket, featuring the release of monthly durable goods orders and pending home sales for the month of September, and might provide some short-term trading opportunities. However, this week's main focus would remain on the release of quarterly GDP print from the US, due on Friday. 

Technical levels to watch

From current levels, 0.7135 level is likely to protect immediate downside below which a fresh bout of selling pressure is likely to drag the pair immediately towards weekly low support near 0.7110 before the pair eventually drops to test its next support near 0.7090 area.

Meanwhile on the upside, bullish momentum above 0.7165 immediate resistance could get extended towards weekly high resistance near 0.7184 en-route 100-day SMA resistance near 0.7200 handle.