NZD/USD extends bullish momentum further beyond 100-DMA

The NZD/USD pair was seen building on to Monday's strong up-move and has now decisively strengthened beyond 100-day SMA important resistance. 

Currently trading around 0.7225 region, the highest level since Nov. 10, the greenback, as measured by the overall US Dollar Index, lost further ground on Tuesday and is helping the pair to maintain its strong bid tone for the second consecutive session. Adding to this, the prevalent risk-on mood is also lending support to higher-yielding currencies - like the Kiwi. 

Investors now shift their focus on the much awaited Fed monetary policy meeting, which would help investors evaluate possibilities and timing of next Fed rate-hike action in 2017 and eventually drive the pair in the near-term.

Technical levels to watch

A follow through buying interest has the potential to lift the pair towards 0.7260-65 resistance area before the pair breaks through 0.7300 handle and aims towards testing its next major resistance near 0.7325-30 region. On the flip side, renewed weakness back below 0.7200 handle (100-day SMA) now seems to find support near 0.7175-70 area ahead of 50-day SMA support near 0.7150 region.