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    NZD/USD awaiting for a decisive break-through descending trend-channel

    The NZD/USD pair remained well offered during Asian / early European session, with the pair just managing to hold above 0.7025-30 last week's high resistance break-out level. With a slew of central bank monetary policy decisions this week, market participants have turned cautious and are moving away from riskier asset classes like equities and commodities, driving commodity-linked currencies, like kiwi, lower. Moreover, global risk-off sentiment, as depicted by a sell-off in Asian equities along with weak opening for European equity markets and bearish tone surrounding oil prices, is also seen weighing on the NZD/USD pair. Going forward, the release of UK inflation data during European session and US monthly retail sales later during NA trading session will be in focus on Tuesday and could drive risk sentiment in the forex market. From technical perspective, the pair is oscillating within a short-term descending trend-channel formation on hourly chart, with the trend-channel resistance around mid-point of 0.7000-0.7100 handle. A convincing strength above descending trend-channel would pave way for further near-term upward trajectory for the pair.Technical levels to watchOn a sustained move above 0.7050, the pair seems to immediately jump to Monday's high level of 0.7080 ahead of 0.7100 handle, above which the pair seems all set to extend its upward trajectory back towards RBNZ led swing high resistance near 0.7145-50 zone.On the flip side, in ability to clear the trend-channel resistance and a subsequent break below 0.7030-20 support seems to drag the pair towards the descending trend-channel support, currently near 0.6990 level, which if broken now seems to trigger a fresh leg of corrective move for the pair.


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