NZD/USD consolidates gains to 32-month tops, comfortable above 0.7200 mark

NZD/USD continued scaling higher for the third consecutive session on Thursday.
The prevalent risk-on mood undermined the safe-haven USD and benefitted kiwi.
Hopes for a global economic recovery, more US fiscal aid boosted risk sentiment.

Haresh Menghani FXStreet

The NZD/USD pair now seems to have entered a consolidation phase and was seen oscillating in a range around the 0.7220-25 region, just below fresh 32-month tops set earlier today.

The pair added to this week's positive move and continued gaining traction for the third consecutive session on Thursday. Growing hopes for a global economic recovery in 2021 remained supportive of the underlying bullish tone in the equity markets, which, in turn, benefitted the perceived riskier kiwi.

Apart from this, the likelihood of additional US financial aid and expectations that the Fed will keep interest rates lower for a longer period further undermined demand for the safe-haven US dollar. This contributed to the momentum and pushed the NZD/USD pair to the highest level since April 2018.

That said, overbought conditions on short-term charts held investors from placing fresh bullish bets amid relatively thin liquidity conditions on the back of year-end holiday season. Nevertheless, the bias still seems tilted in favour of bullish traders and supports prospects for additional gains.

Market participants now look forward to Thursday's US economic docket – highlighting the only release of usual Initial Weekly Jobless Claims. This, along with the broader market risk sentiment, might influence the USD price dynamics and produce some trading opportunities around the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price	0.7224
Today Daily Change	0.0025
Today Daily Change %	0.35
Today daily open	0.7199

Trends
Daily SMA20	0.7094
Daily SMA50	0.6939
Daily SMA100	0.6786
Daily SMA200	0.6545

Levels
Previous Daily High	0.7212
Previous Daily Low	0.7142
Previous Weekly High	0.7125
Previous Weekly Low	0.7002
Previous Monthly High	0.7052
Previous Monthly Low	0.6589
Daily Fibonacci 38.2%	0.7185
Daily Fibonacci 61.8%	0.7169
Daily Pivot Point S1	0.7157
Daily Pivot Point S2	0.7115
Daily Pivot Point S3	0.7087
Daily Pivot Point R1	0.7227
Daily Pivot Point R2	0.7254
Daily Pivot Point R3	0.7296

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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