NZD/USD consolidates near 32-month tops, eyeing 0.7200 mark

NZD/USD gained strong positive traction on Wednesday and jumped to fresh multi-year tops.
The risk-on mood undermined the safe-haven USD and benefitted the perceived riskier kiwi.
Relatively thin liquidity conditions seemed to be the only factor capping gains for the major.

Haresh Menghani FXStreet

The NZD/USD pair now seems to have entered a bullish consolidation phase and was seen oscillating in a range around the 0.7180-85 region, just below 32-month tops set earlier this Wednesday.

The pair built on the previous day's positive move and continued scaling higher through the early part of the trading action on Wednesday. The prevalent upbeat market mood continued weighing on the safe-haven US dollar, which, in turn, benefitted the perceived riskier kiwi.

Investors remained optimistic about the likelihood of additional financial aid and a strong global economic recovery in 2021. The global risk sentiment got an additional boost after UK regulators approved the use of the AstraZeneca/Oxford coronavirus vaccine.

A broad-based USD weakness pushed the NZD/USD pair further beyond the recent swing highs, around 0.7165-70 region, and has set the stage for additional gains. That said, thin trading volumes on the back of year-end holidays held investors from placing fresh bullish bets.

Market participants now look forward to the US economic docket, featuring the second-tier releases of Goods Trade Balance, Chicago PMI and Pending Home Sales. The data, along with the broader market risk sentiment, might influence the USD and provide some impetus to the NZD/USD pair.

Technical levels to watch

NZD/USD

Overview
Today last price	0.718
Today Daily Change	0.0034
Today Daily Change %	0.48
Today daily open	0.7146

Trends
Daily SMA20	0.7087
Daily SMA50	0.6929
Daily SMA100	0.678
Daily SMA200	0.6538

Levels
Previous Daily High	0.7165
Previous Daily Low	0.7093
Previous Weekly High	0.7125
Previous Weekly Low	0.7002
Previous Monthly High	0.7052
Previous Monthly Low	0.6589
Daily Fibonacci 38.2%	0.7137
Daily Fibonacci 61.8%	0.7121
Daily Pivot Point S1	0.7105
Daily Pivot Point S2	0.7063
Daily Pivot Point S3	0.7033
Daily Pivot Point R1	0.7177
Daily Pivot Point R2	0.7207
Daily Pivot Point R3	0.7249

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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