Key Highlights
- NZD/USD surged above the 0.7200 and 0.7300 resistance levels.
- It broke a key bearish trend line with resistance at 06750 on the weekly chart.
- AUD/USD is also gaining pace, but it could face resistance near 0.8000.
- The US Durable Goods Orders could increase 1.1% in Jan 2021, up from the last 0.5%.
NZD/USD Technical Analysis
In the past few weeks, the New Zealand Dollar followed a bullish path above 0.7000 against the US Dollar. NZD/USD surpassed the 0.7200 resistance level and extended its upward move.
Looking at the weekly chart, the pair started a strong increase after it broke the 0.6750 resistance in October 2020. The pair settled nicely above 0.7000, 100-week simple moving average (red), and the 200-week simple moving average (green).
The pair even cleared the 1.236 Fib extension level of the key decline from the 0.6762 high (formed on 2019.12.29) to 0.5467 low (formed on 2020.03.15).
NZD/USD is trading above 0.7300 and it could continue to rise. The next major resistance is near the 0.7480 and 0.7500 levels. The next major resistance is near the 0.7560 level. It is close to the 1.618 1.236 Fib extension level of the key decline from the 0.6762 high to 0.5467 low.
On the downside, the pair is likely to remains well bid above 0.7300 and 0.7250. Any more losses might call for a test of the 0.7120 support.
Looking at AUD/USD, the pair is trading nicely above 0.7880 and it could soon test the 0.8000 resistance zone. Similarly, crude oil price is gaining pace and it recently cleared the $62.00 resistance.
Economic Releases
- US Initial Jobless Claims – Forecast 838K, versus 861K previous.
- US Durable Goods Orders Jan 2021 – Forecast +1.1% versus +0.5% previous.
- US Pending Home Sales Jan 2021 (YoY) – Forecast 0%, versus -0.3% previous.
