NZD/USD down 0.7% to 0.7241 currently

The dollar is catching a light bid to start European morning trade, moving up across the board with NZD/USD the biggest loser at the moment.

The pair is down 0.7% to a low of 0.7241 as sellers continue to keep a defense of resistance around 0.7300-05 this week.

The post-RBNZ momentum looks to be dissipating and while the kiwi may still hold some bullish prospects moving forward, any hawkish undertones by the RBNZ needs to be backed up by the data otherwise it may prove to be all for naught.

The near-term chart is also showing that buyers are losing momentum:

NZD/USD H1 28-05

The drop today sees the pair fall back past both the 38.2 retracement level of the upswing this week and the 100-hour moving average (red line) @ 0.7254.

Further support is now seen closer to the 200-hour moving average (blue line) and 50.0 retracement level @ 0.7230-35 next.

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