- NZD / USD is trading within very tight ranges around 0.7000 amid a quiet forex market due to the Thanksgiving holiday in America.
- The pair appears content to stabilize near the recent highs as it awaits further macro drivers.
The NZD / USD It has been going sideways for most of the session around 0.7000, despite slight flows of risk in the equity and crude oil markets. In fact, forex markets have mostly remained in range today amid calm market conditions, as US participants are absent during the Thanksgiving holiday.
Kiwi expects new drivers
Having been propelled to fresh multi-year highs this week and regained the psychological level of 0.7000 on a combination of USD weakness this week, as well as rumors of a potentially aggressive change in the RBNZ’s inflation mandate, the kiwi appears glad to wait for more boosters.
It remains to be seen what these other drivers might be. With things calm on the front of the RBNZ for the next few weeks and little through the crucial New Zealand data next week, the NZD / USD is more likely to continue driven by global risk appetite and the US dollar. .
NZD / USD forming a bullish pennant
Having rocketed higher and past 0.7000 on Wednesday (pole), the NZD / USD has formed something of a bullish pennant, implying that a breakout to the upside and more gains are a great possibility. If this were the case, the most important note level would be the recent high at 0.7015. Beyond that, the next major resistance areas would be the 0.7050 level and the June 2018 highs at 0.7060, just above.
Looking at the pair on a longer time horizon; The NZD / USD also broke above a long-term uptrend during its rally on Wednesday that linked the highs of June 9 and 10, July 21, 21, 28 and 31 and September 2. Currently, the pair is retesting this trend line, which some bulls might see as a good opportunity to jump long in order to take advantage of the breakout to the upside.
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