NZD/USD: Off session highs, but holds above 200-hour MA

• Kiwi is losing ground in Asia despite US-China trade talks. 
• NZD/USD is down 0.27 percent but is still holding above the 200-hour moving average (MA). 

Currently, NZD/USD is trading just above the 200-hour MA of 0.6615, having clocked a high of 0.6642 in early Asia.

The currency pair recovered from the 2.5-year low of 0.6544 hit on Aug. 15 and ended last week with moderate gains as prospects of US and China returning to negotiating table stabilized the risk sentiment. 

However, the bid tone weakened today, possibly because the 14-hour relative strength index (RSI) has been flashing overbought conditions. The pullback from the session high could end up recharging engines for a stronger rally 0.6687 (July 3 low), especially if the equities across the globe continue to cheer the US-China trade talk news. 

NZD/USD Technical Levels

Resistance: 0.6623 (10-day MA), 0.6687 (July 3 low), 0.6714 (July 19 low)

Support: 0.6615 (200-hour MA), 0.6596 (5-day MA), 0.6544 (Aug. 15 low)