The New Zealand Dollar is trading higher against its U.S. counterpart on Tuesday, clawing back the previous day’s losses as traders renew support for a quick economic recovery in 2021 once coronavirus vaccinations are widely distributed. The early price action has put the Kiwi within striking distance of its 2-1/2 year high at .7241 reached last week.
At 08:31 GMT, the NZD/USD is trading .7220, up 0.0045 or +0.63%.
The Kiwi, a liquid proxy for risk, has been buoyed by rising commodity prices and their countries’ success in containing the coronavirus pandemic.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through .7241 will signal a resumption of the uptrend. The main trend will change to down on a move through the nearest main bottom at .7003.
The minor trend is down. It turned down on Monday when sellers took out .7199. A trade through .7241 will change the minor trend to up. A trade through .7152 will reaffirm the downtrend.
The first minor range is .7241 to .7153. Its 50% level at .7197 is new support.
The second minor range is .7003 to .7241. Its 50% level at .7122 is additional support.
Daily Swing Chart Technical Forecast
The direction of the NZD/USD on Tuesday is likely to be determined by trader reaction to the first pivot at .7197.
A sustained move over .7197 will indicate the presence of buyers. If this creates enough upside momentum then look for a drive into .7241. Taking out this level will signal a resumption of the uptrend and put the NZD/USD on a path toward the April 13, 2018 main top at .7395.
A sustained move under .7197 will signal the presence of sellers. If this move generates enough downside momentum then look for a test of the second pivot at .7122. Breaking this level could trigger a move into the next minor bottom at .7084.
For a look at all of today’s economic events, check out our economic calendar.