NZD/USD rebounds from 0.7100 neighborhood

Having posted a six-day low closer to 0.7100 handle, the NZD/USD pair reversed early losses and snapped three consecutive days of losing streak. 

Currently trading around mid-0.7100s, the current pull back from 0.7100 neighborhood could be attributed to short-covering despite of a broadly stronger greenback, which continues to gain traction as market seemed convinced that the Federal Reserve would eventually move towards raising interest rates in December. 

Tuesday's economic docket features the release of Conference Board's consumer confidence index from the US and would be looked upon to grab some short-term trading opportunities. Meanwhile, market expectations over the timing of next Fed rate-hike action would drive broader sentiment surrounding the US Dollar and would remain a key determinant of the pair's near-term trajectory.

Technical levels to watch

From current levels, immediate resistance on the upside is pegged at 100-day SMA near 0.7185-90 region above which the pair seems all set to surpass 0.7200 handle and aim towards retesting 50-day SMA resistance near 0.7250-55 region.

On the downside, session low near 0.7110 level is likely to as as immediate support, which if broken is likely to turn the pair vulnerable to head back towards retesting recent lows support near 0.7050 region.