NZD/USD climbs to fresh two-year highs near 0.7040

Kiwi heads for fourth weekly gains in a row versus the US dollar.
NZD/USD holds above 0.7000, reinforces bullish momentum.

Matías Salord FXStreet

The NZD/USD pair climbed to 0.7038 boosted by a weaker US dollar across the board and reached the highest level since June 2018. It then pulled back modestly, holding above 0.7000 and it is trading at 0.7025/30, up 80 pips for the day.

The key driver on Friday is the decline of the US dollar. The DXY dropped below 91.80, approaching the 2020 low. The NZD/USD lost momentum later as Wall Street futures pulled back.

From a weekly perspective, NZD/USD is about to post the fourth gain in a row and the strongest close since May 2018. The improvement in risk sentiment continues to be the key driver. Over the last days, hopes on the COVID-19 vaccine was the key factor.

Technically, NZD/USD remains bullish with key indicators at overbought levels but no signs of a correction area seen. A decline back under 0.7000 would favor a consolidation or a correction. The next strong resistance might be seen at 0.7055. Support levels might be seen at 0.6980 followed by 0.6940.

Technical levels

NZD/USD

Overview
Today last price	0.7033
Today Daily Change	0.0019
Today Daily Change %	0.27
Today daily open	0.7014

Trends
Daily SMA20	0.6845
Daily SMA50	0.6714
Daily SMA100	0.6673
Daily SMA200	0.643

Levels
Previous Daily High	0.7015
Previous Daily Low	0.6992
Previous Weekly High	0.6952
Previous Weekly Low	0.6841
Previous Monthly High	0.6726
Previous Monthly Low	0.6546
Daily Fibonacci 38.2%	0.7006
Daily Fibonacci 61.8%	0.7001
Daily Pivot Point S1	0.6999
Daily Pivot Point S2	0.6984
Daily Pivot Point S3	0.6976
Daily Pivot Point R1	0.7022
Daily Pivot Point R2	0.703
Daily Pivot Point R3	0.7045

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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