NZDUSD Trading At Highest Level Since June 2018
AUDUSD and NZDUSD price hit new session highs. Currencies appear to be encouraging the slowdown in Covid and hope vaccines will solve the global problem. The NZD was also helped after comments earlier in the week that the RBNZ may look more to house prices in monetary policy decisions. This can lead to relatively higher rates as a result. The NZD is trading at its highest level since June 2018 and is approaching this month’s high price of 0.70592.
The gains come despite the sharp drop in gold prices. On the other hand, commodities such as copper are trading at the highest level since 2014. Gold may be more of a non-trade risk. Technically, the price of gold has also fallen below the $ 1,800 level today, raising the level of key technical support.
Looking at the NZDUSD, the high price hit 0.7036. As mentioned, the next target is 0.70592. That’s the high price from June 7, 2018. A move below opens the door for new upward momentum.
Exploring the hourly chart, the low price in the London morning session stalled against the uptrend line on the chart (see circles numbered in red). It also stalled in a swing zone defined by the 0.7004 to 0.70139 zone (see the lower yellow zone in the graph below). A move higher would target the daily chart resistance at 0.7059 with a channel trendline above 0.70545 currently (and moving higher).
Looking at the AUDUSD, the daily chart shows the pair trading at its highest level since September 1. This level reached 0.74128 and represents the highest price since August 2019. Today’s high price is also testing the swing hi of December 3, 2018 at 0.73927. The high price of the day has so far reached 0.73939.
Breaking through the hourly AUDUSD chart, the price has just crossed above an uptrend line on the chart at 0.7387. More optimistic. Today’s lows stalled ahead of an uptrend line and also stayed above its 100 hour moving average (blue line currently at 0.73471).