• NZD/USD moves in on the key resistance, tempting bearish commitments. 
  • Risk-on environment favours the commodity complex.

NZD/USD is currently trading at 0.7165 between a low of 0.7114 and 0.7174 so far on the day. 

Markets surged overnight with the S&P 500 hitting an all-time high as Joe Biden was sworn in as the 46th US President. 

The commodity complex benefited when an upbeat Bank of Canada left rates on hold.

The central bank signalled ongoing loose monetary policy amidst a tough period for the economy, but said with vaccines being distributed and significant fiscal stimulus working its way through, the outlook is brightening. 

The BoC acknowledged that the medium-term outlook is “now stronger and more secure than in the October projection, thanks to earlier-than-expected availability of vaccines and significant ongoing policy stimulus”.   

Meanwhile, in the very short term, attention will be back on the Reserve Bank of New Zealand with the Consumer Price Index release tomorrow. 

Further out, the Federal Reserve meeting next week will ''acknowledge the improved fiscal backdrop since the last meeting in mid-December,'' analysts at ANZ Bank said.

''But no change in guidance is expected as the economy navigates the current COVID-driven weakness.''

NZD/USD technical analysis

As with the AUD/USD analysis, the bird had formed an equally compelling chart patter as follows:

The price was expected to move in on the old support that would be presumed to act as new resistance.

Live market

We have seen the 50% mean reversion and the expectations are now for a resumption to the downside. 

However, the 4-hour conditions are not bearish enough and the price can easily continue higher.

Bears will want to see price below the 4-hour 20- moving average and support structure:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD remains sidelined below 1.0600 ahead US data

EUR/USD remains sidelined below 1.0600 ahead US data

EUR/USD is trading close to 1.0600, keeping its range play intact. The US dollar stays sluggish amid a better mood, awaiting the CB Consumer Confidence data. The euro shrugs off the ECB commentary on the new anti-fragmentation tool. 


GBP/USD ranges below 1.2300 amid sluggish USD, US data eyed

GBP/USD ranges below 1.2300 amid sluggish USD, US data eyed

GBP/USD is moving back and forth in a familiar range below 1.2300, lacking a clear directional bias amid a muted US dollar index and risk-on sentiment. Ongoing Brexit and UK political woes remain a drag on the pound. US data eyed. 


Gold bears eye $1,820 and $1,816 as next targets

Gold bears eye $1,820 and $1,816 as next targets

Optimism prevails, pointing to a turnaround Tuesday for the financial markets, as the previous week’s upbeat global momentum returns and caps the broad US dollar recovery. Investors remain wary ahead of the key NATO Summit.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!