NZD/USD jumps above 0.7400 handle, fresh 4-month tops

   •  USD plummets to 3-year low after Mnuchin's comments.
   •  Technical factors support today’s strong up-move.

The NZD/USD pair was seen building on previous session's bullish break out of a 6-day old trading range and moved past the 0.7400 handle for the first time since Sept. 20.

The US Dollar suffered heavy losses across the board and dropped to fresh three-year lows after the US Treasury Secretary Steven Mnuchin said that he wasn’t concerned about the currency’s recent decline, instead a weaker greenback is good for trade. 

In fact, the key USD Index tumbled below the 90.00 handle for the first time since December 2014 and was seen as one of the key factors driving the pair higher. 

Today's strong up-move could also be attributed to some short-covering, especially after yesterday's break through the 0.7330 supply zone. Hence, a continuation of the strong bullish momentum, supported by a follow-through technical buying, now seems a distinct possibility.

Technical levels to watch

Immediate resistance is pegged near 0.7435 level (Sept. 2017 high), above which the pair is likely to aim towards reclaiming the key 0.75 psychological mark. On the flip side, any meaningful retracement might now find some support near the 0.7370-65 region, below which the corrective slide could get extended back towards the 0.7300 handle.