- October 29, 2020
- Posted by: Analysis Team
- Category: Forex News
- NZD/USD holds onto critical 21-DMA support.
- Daily RSI remains in the bullish region,
- All eyes on US Q3 GDP and Jobless Claims.
The recovery momentum in NZD/USD remains intact in early Europe, as the buyers remain hopeful amid a 1% rebound in the S&P 500 futures and broad-based US dollar retreat. The dollar bulls take a breather ahead of the key US Q3 GDP and Jobless Claims data.
From a near-term technical perspective, the sentiment around the kiwi remains underpinned so long as the bulls manage to defend the 21-day moving average (DMA) at 0.6635.
At the press time, the spot is looking to extend the upside, having recaptured the 50-DMA barrier at 0.6647.
The buyers now target the 0.6700 level before retesting Wednesday’s high of 0.6721. The 14-day Relative Strength Index (RSI) holds above the midline, allowing for more gains.
Meanwhile, the spot has regained ground above all the major DMAs.
A sustained break below the 21-DMA support is critical to unleashing the downside. The next cushion awaits at the horizontal 100-DMA of 0.6600.
Acceptance below the latter will likely put the four-month-old ascending trendline support, now at 0.6567, at risk.
NZD/USD: DAILY CHART