NZDUSD monthly trend line retest

Intermediate

The price broke the massive monthly trend line during sell off in March and now we see a retest of that trend line at a strong resistance zone at 0.62. New Zealand was highly effective in its response the pandemic and a pullback of the stock market created a risk on environment for the currency to bounce back. The FED printed trillions of dollars and fear of USD deflation due to oversupply weakened the USD.

NZDUSD may chart

Current level shows consolidation as we wait for potential break of the trend line and resistance to the upside to test the monthly downtrend line in case the risk-on scenario maintains. Or potential bearish continuation, but that would imply fundamental shift to risk off.

FX performance may

This chart shows the May performance of FX pairs, showing clear risk on mood the past month. NZDUSD gained 1.17%, while USD pairs showed weakness against risk on currencies.

Riots in USA are becoming more heated as 41 million unemployed people take to the streets for lack of job or proper support from the government, as the White House mostly cares about big corporations’ stock value and not the average citizen. This could further impact the USD.

Editor

Anton is an accomplished Director at Markom Development Ltd where he combines cross functional competencies in staff management, operations planning, customer retention and strategy development. BU... Continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

Markets end 2020 in “risk on” mode

Macroeconomic/ geopolitical developments Trump finally signed the $900 billion COVID relief bill, a relief for markets.The EU-UK trade deal finally got done over the holiday season and was implemented at the end of 2020.Europe and the USA are still seeing aggressive increases in the numbers of cases, hospitalisations and deaths from COVID-19, as the new variant first identified in the UK is now being seen… Continued

Markets keep the party going, despite surging US COVID-19 cases

Macroeconomic/ geopolitical developments A fairly quiet week on the macroeconomic and geopolitical front, with the holiday shortened session in the US on Thursday and Friday because of Thanksgiving.The main development was on the US political side, as the Presidential transition of power has started properly, and although the Trump administration continues dispute the election result, they have allowed Biden’s team to start the transition. Also,… Continued

NZD leads “risk” currencies higher – NZDUSD, AUDUSD, and USDCAD forecasts

A solid consolidation tone since midweek, but November strength seen across the major “commodity” or “risk” currencies (the New Zealand, Australian and Canadian Dollars) remains intact.The “risk on” price action is still being assisted by:Pfizer, Moderna and Astra Zeneca/ Oxford COVID-19 vaccine hopesExtension of the Biden bounceMixed, but marginally positive economic data compared with consensusHere we look at the NZDUSD, AUDUSD and USDCAD charts and… Continued

“Risk on” mode reflected by “commodity currency” resilience

Macroeconomic/ geopolitical developments The announcement last Monday from Moderna that their COVID-19 vaccine produced very positive trial results sustained the prior “risk on” theme, evident after the similar announcement from Pfizer the Monday before. This “risk on” tone was further reinforced by another positive statement from the Astra Zeneca/ Oxford University trial in the week.On the US politics side, there is still a negative impact… Continued

Quiet week sees US Dollar Drift lower (DXY)

Cable breaks up - GBPUSD forecastDollar-Yen fails at resistance - USDJPY forecastKiwi outperforms Aussie - NZDUSD, AUDUSD and AUDNZD forecasts Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.