NZD/USD reclaims 0.72 mark, hits highest level since late-Feb.

The NZD/USD pair continued grinding higher and has now moved back above the 0.7200 handle for the first time since late Feb.

Spot continued gaining traction for the third consecutive session and prolonged its strong upward trajectory from one year lows touched on May 11, gaining around 400-pips over past four weeks. 

Today's up-move, however, lacked any strong momentum as investors remained cautious ahead of major global events on Thursday - UK general election, ECB policy decision and former FBI Director James Comey's testimony before the US Senate Intelligence Committee.

Meanwhile, a modest up-tick in the US treasury bond yields, underpinning the US Dollar demand, also collaborated towards capping any further up-move for higher-yielding currencies - like the Kiwi.

With a relatively thin US economic docket, featuring the only release of weekly jobless claims, the US bond yield dynamics would continue to influence the pair's movement on Thursday. 

Investors’ attention would remain glued to Comey's testimony, which would drive broader market sentiment surrounding the greenback and help determine the pair's next leg of directional move.

Technical levels to watch

From current levels, 0.7225 level is likely to act as immediate resistance, closely followed by resistance near 0.7245 horizontal level, above which the pair is likely to dart towards the 0.7300 handle.

On the flip side, strong retracement move below 0.7190-80 area could trigger a near-term profit taking slide towards 0.7145-40 region en-route the very important 200-day SMA support near 0.7100 mark.