- The kiwi is heading for the fourth consecutive weekly gain against the US dollar.
- NZD / USD remains above 0.7000, reinforcing the bullish momentum.
The pair NZD / USD it rose to 0.7038 driven by a weaker US dollar across the board and hit the highest level since June 2018. It then fell back modestly, staying above 0.7000 and trading at 0.7025 / 30, an 80 pip gain on the day. .
The key driver on Friday is the decline in the US dollar. The DXY fell below 91.80, approaching the 2020 low. The NZD / USD lost momentum later as Wall Street futures fell back.
From a weekly perspective, the NZD / USD is poised to post the fourth consecutive gain and the strongest close since May 2018. Improving risk sentiment remains the key driver. For the past few days, hopes for the COVID-19 vaccine were the key factor.
Technically, NZD / USD is still bullish with key indicators at overbought levels, but no signs of a correction area are in sight. A pullback below 0.7000 would favor a consolidation or correction. The next strong resistance could be seen at 0.7055. Support levels could be seen at 0.6980 followed by 0.6940.
Technical levels
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