NZD/USD finds support at 0.6415 and returns to 0.6450
- NZD/USD reversal from 0.6500 level finds support at 0.6415.
- The kiwi trims losses as the US dollar pulls back with equities resuming their bullish trend.
- A break beyond 0.6563 resistance will reinforce the upside view.
New Zealand dollar’s reversal from 0.6500 area earlier today has been contained at 0.6515, and the pair returned to the mid-range of 0.6500 as market sentiment improved. The US dollar has lost the strength witnessed earlier during Tuesday’s US session although the pair remains negative on the day.
NZD pulls lower on concerns about a new coronavirus wave
The kiwi has been unable to extend its recovery beyond 0.6500 after two attempts today and pulled back today lows at 0.6515 as market sentiment soured. News reports of increases of coronavirus cases in diverse US states and FED Powell warnings about the economic consequences of a second wave of infections offset the previous enthusiasm about the bright US macroeconomic data and boosted the USD across the board.
Dollar strength, however, lost momentum later during the session as sentiment improved and equity markets resumed their bullish trend. With the USD giving away gains, the kiwi has managed to reach 0.6455.
NZD/USD: Break of key resistance at 0.6563 to reinforce the view of upside trend – Credit Suisse
The FX analysis team at Credit Suisse, observe the pair on a consolidative mode, with key resistance at 0.6563, “A sustained and closing break above the June high at 0.6563/84 would reinforce thoughts of a broader change in trend to the upside, with resistance then seen at 0.6629, ahead of 0.6665, where we might see fresh sellers at first. Removal of here in due course would the expose the 31st December 2019 high, then 38.2% retracement of the 2014/2020 fall and the 61.8% retracement of the 2017/2020 fall at 0.6755/60.”
NZD/USD key levels to watch