NZD/USD drops back from 0.7100 level as Kiwi bulls take a breather


  • NZD/USD has dropped back from highs above 0.7100 in recent trade amid a bout of profit-taking.
  • NZD is an underperformer in the G10 on Thursday but is still one of the star performers over the last month.

A bout of profit-taking has pulled NZD/USD back from the 0.7100 level, which the pair briefly surpassed earlier on Thursday. At present, NZD/USD is trading closer to the 0.7080 and still trades with gains of around 10 pips on about 0.1% on the day.

NZD pulls back but still a star performer

Amid the latest bout of profit-taking, NZD has dropped down the G10 performance ranking and is the second-worst performer on the day (USD is, of course, the worst performer). However, when looking at how NZD has performed vs its peers over the last month, the picture is completely different; NZD is up 6.17% since 4 November, significantly outperforming the likes of AUD (up 4.0%), EUR (up 3.7%), GBP (up 3.1%), CHF (up 2.3%) and CAD (up 2.1%). Thus, some days of relative underperformance are likely warranted at this point.

NZD/USD still looking bullish from a technical perspective

NZD/USD continues to trade within the confines of a bullish trend channel, implying that in the near future, a continuation of recent upside represents the path of least resistance. To the upside, this bullish trend channel links the 16, 18 and 24 November and 2 and 3 December highs. To the downside, the bullish trend channel links the 13, 19, 23 and 30 November and 2 and 3 December lows.

If NZD/USD does see a temporary setback, solid support in the 0.7060 area (the June 2018 highs) is likely to come into play. Just below that, 0.7050 has acted as resistance and support recently also. Meanwhile, if the pair continues with its bullish trajectory, a test of March 2018 lows just above 0.7150 are likely at some point.

NZD/USD four hour chart

More key levels

NZD/USD

Overview
Today last price 0.7078
Today Daily Change 0.0017
Today Daily Change % 0.24
Today daily open 0.7061
 
Trends
Daily SMA20 0.6922
Daily SMA50 0.6744
Daily SMA100 0.6692
Daily SMA200 0.6444
 
Levels
Previous Daily High 0.7085
Previous Daily Low 0.7031
Previous Weekly High 0.704
Previous Weekly Low 0.6897
Previous Monthly High 0.7052
Previous Monthly Low 0.6589
Daily Fibonacci 38.2% 0.7052
Daily Fibonacci 61.8% 0.7064
Daily Pivot Point S1 0.7033
Daily Pivot Point S2 0.7005
Daily Pivot Point S3 0.6979
Daily Pivot Point R1 0.7087
Daily Pivot Point R2 0.7113
Daily Pivot Point R3 0.7141

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD recaptures 0.7700 amid Risk-on mood, upbeat Aussie data

AUD/USD remains strongly bid above 0.7700 after Monday’s downbeat performance. The aussie benefits from upbeat Australian housing data and risk-on mood. Incoming Treasury Secretary Janet Yellen’s indirect support to Biden’s stimulus favors the risk-takers.

AUD/USD News

EUR/USD:Falling wedge on 4H tests bearish impulse below 1.2100

EUR/USD portrays choppy trading moves between 1.2075 and 1.2080 during Tuesday’s Asian session. Bullish chart pattern, recovering MACD keep buyers hopeful. Early February lows, 61.8% Fibonacci retracement add to the downside filters.

EUR/USD News

Gold: All eyes on the greenback and US yields

Gold prices are attempting to recover as te DXY stalls in its bullish correction. The dollar could still be a catalyst for a deeper positioning squeeze in the yellow metal. The US dollar strengthened for a third consecutive day on Monday.

Gold news

BTC/USD: Its a make or break at 36170

BTC/USD is trending up again in the 30 minutes time frame; the price structure has changed since the weekend selloff with higher highs and higher lows. Prices fell below the crucial point at 36170 in yesterday's session but bounced back.

Read more

US Dollar Index: Drops back towards fortnight-old support below 91.00

DXY extends pullback from highest in one month. The Index remains on the back foot around 90.68, down 0.10% intraday, during early Tuesday. Monday’s Doji at multi-day top, overbought RSI favor further consolidation of gains.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures