NZD/USD drops for the fourth day in a row

NZD/USD is about to post the lowest close since the beginning of July and the fourth daily decline in a row. The pair recovered ground during the European session but it was unable to erase all losses.

Earlier on Monday, Q2 inflation data from  New Zealand, showed lower-than-expected numbers, increasing speculations about a rate cut from the Reserve Bank of New Zealand and weakened the kiwi in the market.

The pair dropped to 0.7067 and then bounced to the upside. The recovery from the lows found resistance at 0.7120 and it was trading at 0.7105/10, 220 pips below last week lows.

NZD/USD technical levels

To the upside, resistance levels might be located at 0.7125 (European session high), 0.7160 (20-day moving average) and 0.7200 (July 15 high). On the flip side, support could be seen at 0.7090 (American session low), 0.7065 (July 18 low) and 0.6970 (June 15, 16 & 24 low).