NZD/USD back-and-forth on thin Monday trading, back to test 0.7390

• NZD/USD lacking decisive moves in thin market volumes.
• Pair trading at highs, but downside pressure strong.

NZD/USD is declining in the latter half of the Tokyo session, currently testing the 0.7390 region after reaching a peak of 0.7409. This is gearing up to be a quiet Monday, with China's insitutions shuttered to celebrate Chinese New Year, and the US market will be staying dark until Tuesday in observance of President's Day.

With very little New Zealand news on the release schedule this week, NZD/USD can expect to get towed around by general market sentiment, as traders flop back and forth between buying up the US Dollar when risk aversion stokes up, and dumping the US Dollar as equities claw their way upwards.

NZD/USD Technicals

With the pair trading dangerously close to seven-month highs, buyers will be looking to resume control of the pair following the rejection of support at the 34-EMA 0.7224, while the current challenge will be to push the pair up and over last week's high of 0.7437. Further price movements will have to overcome resistance at 0.7410 and the cap of 0.7436 itself, while a turn for the bearish will see support at 0.7373 and 0.7335 below.