The Kiwi Takes Back 0.6100 and is Bullish
Rowan Crosby • 1 min read
Another day and another bullish session from the key risk currencies, with the Kiwi leading the charge higher.
The NZD/USD was the strongest currency overnight and that comes on the back of the break of the key technical level at 0.6100. Price had really been in a bit of a holding pattern since it reclaimed 0.6000, but now it looks like the door is open to some more upside.
The move comes on the New Zealand economy starts to go back to work after ‘eradicating’, COVID-19. Of course, this will still have some limitations on the economy as a whole because it means the borders will need to remain closed to some degree. And as we know, tourism is a big part of the Kiwi economy. So it is not quite business as usual just yet.
It’s a similar story for the other key risk currencies who are also surging higher as sentiment continues to improve.
The AUD/USD and the USD/CAD have also been big winners, but it is really being led by those economies that are best placed to avoid the fallout from the virus.
Looking at the chart of the NZD/USD, the good news for the bulls is the fact that there doesn’t appear to be much real resistance overhead in the near future.
In truth, I think we could see a rally all the way back to the 0.6350 point. That was basically where things were sitting before the COVID-19 saga really took hold.
Theoretically, should price really be back at those levels – maybe not. But from a charting perspective that looks like the next major point.
Otherwise, the round number levels will likely provide some selling points as well.