NZD/USD fades a bullish spike to fresh multi-month tops

The NZD/USD pair faded a knee-jerk bullish spike to fresh multi-month tops and retreated around 50-pips from highs to currently trade back around the 0.7300 handle.

A sharp recovery in the US Treasury bond yields, which although has failed to extend any support to the greenback, was seen weighing on higher-yielding currencies and has been one of the key factors for the pair's retracement from the highest level since Feb. 7.

Despite of the pull-back, the pair has still managed to hold in positive territory for the fourth consecutive session amid a fresh wave of greenback selling interest. In fact, the key US Dollar Index was seen hovering around yearly lows and helped the pair to hold its neck just around the 0.7300 handle, at least for the time being.

Next on tap would be the release of Conference Board's Consumer Confidence Index for June ahead of Philadelphia Fed President Patrick Harker and the Fed Chair Janet Yellen's speech later during the day.

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Technical levels to watch

A follow through retracement below 0.7280-75 region is likely to accelerate the profit-taking slide towards 0.7250 region en-route 0.7215 strong horizontal support and the 0.7200 handle. 

On the upside, momentum back above 0.7320 level might continue to face some fresh supply near mid-0.7300s, which if cleared has the potential to lift the pair towards yearly tops resistance near 0.7375 region ahead of the 0.7400 handle.