- NZD/USD gained some strong positive traction on Thursday and broke through 0.6500 hurdle.
- The move-up marked a near-term breakout through a bullish flag pattern on short-term charts.
- The pair now seems all set to aim back to test June swing highs, around the 0.6580-85 region.
The NZD/USD pair continued scaling higher through the mid-European session and climbed back closer to last week's swing high, around the 0.6530-35 region in the last hour.
A sustained move beyond the key 0.6500 psychological mark, which coincided with the top end of a three-week-old descending trend-channel, was seen as a key trigger for bullish traders. The mentioned channel constituted towards the formation of a bullish continuation flag pattern on short-term charts, which supports prospects for an extension of the recent positive move witnessed over the past three months or so.
Hence, some follow-through strength back towards June monthly tops, around the 0.6580-85 region, now looks a distinct possibility. The constructive outlook is further reinforced by bullish technical indicators on the daily chart. However, RSI on hourly charts is already flashing slightly overbought conditions and warrant some caution for bulls ahead of the closely-watched US monthly jobs report – NFP.
On the flip side, dips towards the mentioned channel resistance breakpoint, around the 0.6500 mark, might now be seen as a buying opportunity. This, in turn, should help limit the slide near the 0.6460-55 horizontal level. Any subsequent weakness might accelerate the slide back towards the 0.6385-80 support zone.
NZD/USD 4-hourly chart
-637292886853989423.png)
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD consolidates gains below 1.0700 amid upbeat mood
EUR/USD is consolidating its recovery below 1.0700 in the European session on Thursday. The US Dollar holds its corrective decline amid improving market mood, despite looming Middle East geopolitical risks. Speeches from ECB and Fed officials remain on tap.
GBP/USD clings to moderate gains above 1.2450 on US Dollar weakness
GBP/USD is clinging to recovery gains above 1.2450 in European trading on Thursday. The pair stays supported by a sustained US Dollar weakness alongside the US Treasury bond yields. Risk appetite also underpins the higher-yielding currency pair. ahead of mid-tier US data and Fedspeak.
Gold appears a ‘buy-the-dips’ trade on simmering Israel-Iran tensions
Gold price attempts another run to reclaim $2,400 amid looming geopolitical risks. US Dollar pulls back with Treasury yields despite hawkish Fedspeak, as risk appetite returns.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.