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FxWirePro: NZD/USD snaps 7-day winning streak, retraces below 0.72 mark

NZD/USD chart - Trading View 

NZD/USD was trading 0.32% lower on the day at 0.7175 at around 08:50 GMT.

The major snaps 7-day bullish streak and has retraced from fresh 4-month highs at 0.7218.

Concerns about a credit crunch in China's real estate sector dented investors' appetite for riskier assets.

A softer risk tone, recent runaway rally in the US Treasury bond yields benefitted the safe-haven USD and added downside pressure on the pair.

That said, rising bets for an additional RBNZ rate hike to curb stubbornly high inflation, likely to keep downside limited.

NZD/USD trades with a bullish technical bias. Upside price action has been reinforced after channel breakout on Tuesday's trade.

Major Support Levels: 

S1: 0.7136 (5-DMA)

S2: 0.7097 (200-DMA)

S3: 0.7057 (38.2% Fib)

Major Resistance Levels: 

R2: 0.7196 (200-month MA)

R1: 0.7212 (61.8% Fib)

R3: 0.73

Summary: NZD/USD hovers near major resistance at 200-monthly moving average at 0.7196. Momentum is bullish, watch out for decisive break above 0.72 for further gains.

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