NZD/USD: Key Technical Breakout Suggests More Upsides
- NZD/USD formed a support base above 0.7150 and started a fresh increase.
- It broke a crucial contracting triangle with resistance near 0.7250 on the 4-hours chart.
- EUR/USD and GBP/USD are trading nicely above the 1.2180 and 1.4100 support levels respectively.
- The US GDP is likely to grow 6.5% in Q1 2021 (Preliminary), up from 6.4%.
NZD/USD Technical Analysis
The New Zealand Dollar formed a strong support near 0.7150 against the US Dollar. NZD/USD started a fresh increase and it cleared a couple of major hurdles near 0.7220 and 0.7250.
Looking at the 4-hours chart, the pair settled nicely above the 0.7200 zone. There was also a break above a crucial contracting triangle with resistance near 0.7250. The pair settled above 0.7250, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The pair even spiked above the 0.7300 resistance zone. The current price action and the triangle break suggest that the pair could rise further above the 0.7325 and 0.7350 levels. The next major resistance sits near the 0.7420 level.
If there is a downside correction, the previous resistance near 0.7250 is likely to act as a support. The next major support is near 0.7215 level and the 100 simple moving average (red, 4-hours).
Overall, NZD/USD broke many important hurdles near 0.7250, opening the doors for more gains. Looking at EUR/USD, the pair is consolidating gains above the 1.2180 support zone. GBP/USD is holding the 1.4100 support zone and it is struggling to surpass 1.4200.
- US Initial Jobless Claims - Forecast 425K, versus 444K previous.
- US Gross Domestic Product Q1 2021 (Preliminary) – Forecast 6.5% versus previous 6.4%.
- US Durable Goods Orders for April 2021 – Forecast +0.7% versus +1.0% previous.