NZD/USD Price Analysis: Kiwi jumps to test critical resistance around 0.6620
- Kiwi outperforming during the American session as USD tumbles and modest improvement in risk sentiment.
- NZD/USD rises to the upper limited of a short-term descendant channel.
A weaker US dollar across the board boosted the NZD/USD pair that outperformed on the back of a stronger kiwi. The pair broke above the 0.6570 resistance, gaining more strength.
So far, NZD/USD peaked at 0.6619, the highest level in a week. It continues to trade around the 0.6615/20 area, a key short-term barrier that contains an horizontal resistance and the upper border of a descendant channel.
A consolidation above 0.6620 would point to more gains targeting 0.6640 and above the last week high at 0.6650. While if NZD/USD fails at the current level, the channel will remain in place, suggesting weakness ahead. The immediate support stands at 0.6595 followed by 0.6565.
NZD/USD 4-hour chart
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
