NZDUSD recently fell through support around .7135 even when the latest jobs report from New Zealand turned out stronger than expected. Price found support around .7090 and might be in for a pullback.

Applying the Fibonacci retracement tool shows where more sellers might be waiting. The 50% level is close to the broken support and the .7150 minor psychological resistance while the 61.8% Fib is in line with the dynamic resistance at the moving averages.

The 100 SMA is still above the longer-term 200 SMA, though, so the path of least resistance might be to the upside. In other words, resistance levels could still be broken from here and NZDUSD could resume the longer-term rally.

Stochastic is moving up to show that buyers have the upper hand and could continue to push for gains until overbought conditions are met. RSI has more room to head north before indicating exhaustion among buyers, so NZDUSD might enjoy some upside from here.

The quarterly employment change report printed a 2.0% jump in hiring versus the projected 0.4% uptick and the earlier 1.0% gain. This was enough to bring the jobless rate down from 4.0% to 3.4% versus the 3.9% consensus.

However, the labor cost index turned out weaker than expected with a meager 0.7% uptick versus the estimated 0.8% gain. Also, concerns about the sustainability of the pickup in hiring weighed on the Kiwi, as most of the gains were from the reopening from the lockdown.

The US dollar has the ADP non-farm employment change figure to look forward to today, just before the NFP is released on Friday. An increase of 400K in jobs is eyed, following the earlier 568K gain. The ISM services PMI is also up for release, and traders would likely keep tabs on the employment component.

The bigger catalyst would likely be the FOMC decision, though, as central bank officials might clarify their timeline on tapering and tightening.