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    NZD/USD fades a bullish spike, descending trend-channel resistance holds Haresh Menghani

    After bottoming out around 0.7030, erasing all of its RBNZ status-quo sharp up-move, the NZD/USD pair bullish momentum gained traction and jumped to 0.7080 before fading the spike to currently trade around 0.7060.Earlier during Asian session, risk-aversion flow dominated the Monday opening trade on contemplating 'Brexit' worries and terror attack in Orlando, boosting the safe-haven demand for the US Dollar. Moreover, the kiwi weakened on dismal Chinese Foreign Direct Investment data released over the weekend. However, in wake of the last week's break-out momentum above 0.7045-50 resistance, the pair seems to resume its bullish momentum after filling up the RBNZ decision led price-gap on Thursday. Going forward, outcome of this week's FOMC meeting coupled with sentiment surrounding the safe-haven appeal of the US Dollar, would determine the near-term direction for the pair.From a technical perspective, the pair has now moved within a short-term descending trend-channel on H1 and is reversing from the trend-channel resistance. Hence, from current levels, seems more likely to extend the near-term corrective move.Technical levels to watchOn the immediate downside, weakness below 0.7050, leading to a fall below day's through support near 0.7030, is likely to get extended towards the descending trend-channel support around 0.7010-0.7000 handle. A decisive break below the trend-channel support might negate any near-term bullish outlook for the pair, making it vulnerable to further downside in the near-term.On the flip side, decisive strength above trend-channel resistance near 0.7070-75 area, seems to boost the pair back above 0.7100 handle and continue boosting its further towards retesting last week high resistance near 0.7140-50 region.


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