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NZD/USD Extend Rally, US GDP Report Next

Aayush Jindal

Aayush Jindal

Key Highlights

  • NZD/USD gained bullish momentum above the 0.6750 resistance.
  • A key bullish trend line is forming with support near 0.6740 on the 4-hours chart.
  • EUR/USD is still well below 1.1400, and GBP/USD is stable above 1.3550.
  • The US GDP could increase 7% in Q4 2021 (Preliminary).

 

NZD/USD Technical Analysis

The New Zealand Dollar started a major increase from 0.6600 against the US Dollar. NZD/USD gained bullish momentum and surpassed the 0.6700 resistance zone.

Looking at the 4-hours chart, the pair even broke the 0.6750 resistance level. Finally, the pair even cleared the 0.6800 level, and settled above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

It seems like the pair could rise further above 0.6820. The next major resistance is near the 0.6840 level. Any more gains might send the pair towards the 0.6900 level.

If there is a downside correction, the pair could decline below the 0.6750 level. The next key support is near 0.6740. There is also a key bullish trend line forming with support near 0.6740 on the same chart.

If there is a downside break, the pair could decline towards the 0.6650 level the 100 simple moving average (red, 4-hours). An intermediate support might be 0.6695 and the 200 simple moving average (green, 4-hours).

Looking at EUR/USD, the pair is still struggling to clear the 1.1400 resistance level. Similarly, GBP/USD must settle above 1.3640 to continue higher in the near term.

Economic Releases

  • US Gross Domestic Product for Q4 2021 (Preliminary) – Forecast 7.0% versus previous 6.9%.
  • US New Home Sales for Jan 2022 (MoM) – Forecast 5.5% versus 11.9% previous.
  • US Initial Jobless Claims - Forecast 235K, versus 248K previous.