NZD/USD bulls running out of steam?

NZD/USD is tailing back in a similar fashion to the Aussie in early Asia and in a continuation of the supply that came in after reaching highs of 0.6844 in the early US session.

NZD/USD is testing down through the 0.6820 support in a minor correction of the 0.6715 10th May rally while profit taking kicks in during a phase of consolidation. The commodity sector has shown some signs of life this week and that has benefited the antipodeans, despite the divergence between where markets believe interest rates are heading in the US and commodity bloc nations. The calendar has been light on data and we await now business PMI in NZ.

NZD/USD levels

NZD/USD is down to test the 200 sma on the hourly chart at 0.6873 while the 20 sma on the 4hr chart is located at 0.6790 as a potential area of support below. A continuation of the bid targets the 200 sma on the 4hr at 0.6881 bringing the bulls back into the rising channel established in the Jan recovery while the double top would need to be broken on the 0.70 handle for a confirmation in the trend moving higher.