NZD/USD spikes to fresh 7-week tops, nearing 0.74 handle

   •  Regains positive traction despite a modest USD rebound.
   •  Weaker US bond yields supportive of the strong up-move.
   •  Technically seems poised to extend the bullish momentum.

The NZD/USD pair regained positive traction on Thursday and jumped to fresh 7-week tops during the early European session.

Against the backdrop of yesterday's hawkish FOMC meeting minutes, receding geopolitical tensions over an immediate US military strike on Syria eased some bearish pressure surrounding the US Dollar but did little to prompt any weakness around the major.

After yesterday's directionless move, the pair caught some strong bids and now seemed to track weaker US Treasury bond yields, which tends to underpin demand for higher-yielding currencies - like the Kiwi.

The bullish momentum seemed rather unaffected by a mildly weaker tone around commodity-prices, with the pair building on its recent rebound from the very important 200-day SMA support. 

Meanwhile, the price action clearly seems to suggest that bulls remain committed and hence, a move back above the 0.7400 handle, led by some fresh technical buying, now looks a distinct possibility.

Later during the early NA session, the usual weekly jobless claims data, the key highlight from today's relatively thin US economic docket, would now be looked upon for some short-term trading impetus.

Technical levels to watch

The ongoing momentum seems strong enough to continue lifting the pair towards the 0.7400 handle, above which the bullish trajectory could further get extended towards 0.7435 supply zone. On the flip side, 0.7360-55 area now seems to protect the immediate downside, which if broken might prompt some long-unwinding trade and drag the pair back towards 0.7330-25 intermediate support en-route the 0.7300 handle.