NZD/USD surges through 0.70 psychological mark

The NZD/USD pair's recovery momentum gained fresh traction, lifting the major through 0.7000 barrier to a 2-1/2 week high. 

Currently trading around 0.7020 region, testing session peaks, Thursday's upbeat Chinese services PMI helped the pair to build on to overnight strong gains. Adding to this, a broad based US Dollar retracement, in wake of a slight disappointment from the Fed minutes, was also seen contributing to the pair's up-move.

Moreover, possibilities of stops getting triggered on a sustained move above 0.70 psychological mark might have also collaborated to the pair's strong up-surge in the past hour or so. Hence, it would be prudent to wait for a follow through action to see if the up-tick is on the back of genuine buying or is just a stop-run. 

Later during NA session, US economic docket, featuring the release of ADP report on private sector employment, weekly jobless claims and ISM non-manufacturing PMI, would be looked upon for fresh impetus ahead of the official monthly jobs report on Friday. 

Technical levels to watch

The ongoing momentum seems strong enough to lift the pair towards 0.7035-40 immediate resistance above which the momentum is likely to get extended towards an important moving-averages (200 & 50-day SMAs) confluence resistance near 0.7080 region. On the downside, retracement back below 0.7000 psychological mark might now take support near 0.6975 level, which if broken is likely to accelerate the slide towards 0.6930-25 horizontal support.