NZD/USD plunges to 0.7150 after stellar NFP reading

The NZD/USD pair erased all of its early gains to 0.7220 region and plunged to 0.7150 level following the release of yet another impressive headline NFP print.

With an addition of 255k new jobs and a better-than-expected hourly wage growth of 0.3%, the latest US monthly jobs report for the month of July surpassed consensus estimates and fueled expectations of an eventual Fed rate-hike, sooner rather than later. 

Immediately after the release, the greenback rallied hard across the board with the NZD/USD plummeting to weekly low and now seems all set for a third weekly declines in the previous four. 

Technical levels to watch

On a sustained weakness below 0.7140 weekly lows support the pair seems to immediately head towards 0.7075-70 support area before eventually dropping to its next major support near 0.7000 psychological mark. 

Meanwhile, any attempts of recovery might now confront strong resistance near 0.7200 handle, followed by a strong horizontal resistance near 0.7220 region. A follow through buying interest above 0.7220 resistance, leading to a subsequent strength above 0.7245-50 strong resistance, might negate any near-term bearish bias and continue boosting the pair further in the near-term.