Below 100-DMA, NZD/USD remains vulnerable

The NZD/USD pair's recovery attempt on Wednesday, led by a surprising surge in New-Zealand's trade surplus, got sold into after positive US releases. The pair on Thursday dropped below 0.6700 handle for the first time since late March and is currently trading off day's through level of 0.6696 at 0.6715, still below the very important 100-day SMA near 0.6722.

In the past three weeks, the pair has declined steadily and every attempt of recovery has been utilized by traders to initiate bearish bets. Moreover, the pair is now sustaining its weakness below 100-day SMA for the first time since mid-March.

Traders now look forward to today's US durable goods orders and weekly unemployment claims data to confirm the pair's break-down below 100-day SMA, making the pair vulnerable to further downside in the near-term.

Technical levels to watch

On a sustained weakness below 0.6700 level, the pair would immediately be eying 0.6668 (March 28 low) below which it could drop to test March lows support near 0.6575-70 area. On the flip side, 0.6750-60 area could provide immediate resistance, which if conquered is likely to boost the pair back towards 50-day SMA resistance near 0.6835-40 region.