- June 29, 2021
- Posted by: Analysis Team
- Category: Forex News
- NZD/USD leads G10 winners amid receding coronavirus fears at home.
- Upbeat Momentum line backs recovery from key SMA.
- Multiple resistance lines probe bulls, 23.6% Fibonacci retracement adds to the downside filters.
NZD/USD picks up bids to 0.7050, up 0.26% intraday, during early Tuesday. In doing so, the Kiwi pair not only consolidates the previous day’s losses but becomes the biggest gains among the key currency pairs.
The New Zealand government announcement to lower the virus-led alert levels in Wellington from Level 02 to 01 offers the fundamental fuel to the latest buying.
On the technical side, the pair’s U-turn from the 50-SMA and firmer Momentum line favors the NZD/USD buyers.
However, a downward sloping trend line from June 01 near 0.7080 and the 0.7100 threshold guard the pair’s short-term recovery moves.
Following that, a one-month-old descending trend line near 0.7160 and 61.8% Fibonacci retracement of May-June downside, close to 0.7170, will be strong resistances to watch.
Meanwhile, a downside break of 50-SMA level close to 0.7020 will test intraday sellers with the 23.6% Fibonacci retracement level near 0.7015 and the 0.7000 round figure.
In a case where NZD/USD remains offered below the 0.7000 mark, the odds of witnessing the monthly low of 0.69123 back to the chart can’t be ruled out.
NZD/USD FOUR-HOUR CHART