NZD/USD edges down to 0.6935 after hitting long-term highs at 0.6950

NZD/USD appreciates for the third consecutive week to reach a 23-month high at 0.6950.
The kiwi trades higher as risk appetite returns.
NZD/USD is biased higher and might break above 0.6945 – Credit Suisse.

Guillermo Alcala FXStreet

The New Zealand dollar is pulling back on Friday’s late trading after having posted a fresh 23-month high at 0.6950. The pair has pulled back to 0.6935 area, still 0.36% up on the day and on track to complete a three-week rally.

Kiwi advances in a risk-on market

The risk-sensitive kiwi has resumed its uptrend on Friday, buoyed by the positive market sentiment as the investors shifted their focus from the surging COVID-19 cases the promising news about the progress of the vaccines.

Pharmaceutical giant Pfizer announced earlier today a plan to request emergency-use authorization for their vaccine in the US, an important milestone that has triggered hopes that the cure for the pandemic could be available by late December or beginning of January.

Vaccine news and market speculation about the resumption of talks between the Democrats and the Republicans to pass a coronavirus stimulus package in the US have boosted market optimism, weighing on the safe-haven greenback. The USD Index dipped to test 10-day lows at 92.15 before picking up during the US trading hours and turn positive on the day.

NZD/USD: An eventual breakout of 0.6945 is on the cards – Credit Suisse

According to the Credit Suisse FX Analysis Team, the risk is on the upside and further rally beyond 0.6950 should not be discarded: “Beyond 0.6945 would see the December 2018 high at 0.6970 next, where we would expect to see another pause. Removal of here in due course should subsequently see an acceleration of upside momentum, up to the June 2018 high at 0.7054/60 and eventually 0.7111/58.”

Technical levels to watch

NZD/USD

Overview
Today last price	0.6939
Today Daily Change	0.0012
Today Daily Change %	0.17
Today daily open	0.6927

Trends
Daily SMA20	0.6769
Daily SMA50	0.6688
Daily SMA100	0.6652
Daily SMA200	0.6415

Levels
Previous Daily High	0.693
Previous Daily Low	0.6878
Previous Weekly High	0.6915
Previous Weekly Low	0.6783
Previous Monthly High	0.6726
Previous Monthly Low	0.6546
Daily Fibonacci 38.2%	0.691
Daily Fibonacci 61.8%	0.6898
Daily Pivot Point S1	0.6893
Daily Pivot Point S2	0.686
Daily Pivot Point S3	0.6841
Daily Pivot Point R1	0.6945
Daily Pivot Point R2	0.6964
Daily Pivot Point R3	0.6997

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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