NZD/USD price action suppressed but COVID-19 risks weigh
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Bouncing from trendline support at 0.6000

  • NZD/USD has found support on the upward trending support line at 0.6000.
  • The kiwi has retraced Wednesday’s losses amid a brighter market mood.
  • The pair is testing now near term resistance at 0.6070, which might open pave the path towards April high at 0.6175.

New Zealand dollar’s reversal from 0.6070 has found support at 0.6000 area to pare Wednesday’s losses and hit session highs right above 06050. The pair has been favoured by a  positive market sentiment, which is fueling a moderate risk appetite, on hopes that easing coronavirus restrictions will help to kick off the economic recovery.  

The daily chart shows the NZD/USD trading within an upward trending channel, with the bottom line, now at 0.6000 offering support to the pair.

NZD/USD daily chart

On a shorter-term perspective, however, the 4-hour chart shows a more mixed picture. The kiwi is right now pushing against immediate resistance area at 0.6075 (50 SMA and May 4 and 5 highs). A clear break above here might strengthen the pair to advance towards 0.6175 (April high) on its way to early March lows on the mid-range of 0.6200.

NZD/USD 4/hour chart

NZD/USD key levels to watch

 

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