NZD/USD Intends Uptrend Recovery as Dow Jones Rises

  • 28
    May, 2020

    NZD/USD Intends Uptrend Recovery as Dow Jones Rises

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    Despite Dow Jones closing at a higher 2.21%, the New Zealand Dollar struggles to keep momentum and underperformed on Wednesday.

    Some of the highest-performing stocks were connected to travel in the non-essential service industries, namely Carnival Corporation and United Airlines, up at 5.9% and 3.89%, respectively. This may represent sentiments on the gradual lifting of lockdown measures that may push for revival and demand.


    Asia Pacific Trading Session

    The risk-on shift on Thursday during the Asia Pacific trading session may be opening the entryway for the strength of NZD. As such, the anti-risk JPY and USD may be left vulnerable.


    NZD/USD Technical Outlook

    This currency pair gives off an impression of intending the prevailing uptrend since its drop in late March. Price levels have lately taken out the key resistance (0.6130 – 0.6156), and a rising pattern line from mid-May guides the pair higher. Currently playing around 0.61884, buyers may remain guarded ahead of stimulating the monthly top near 0.6235.

    However, a continued break above 0.6235 empowers the NZD/USD optimists to test close to 0.6300.

    Meanwhile, the sustained pressures between the world’s biggest economies, such as China enforcing more control over Hong Kong, may impede the recovery process of the world, ultimately affecting the performance of currencies globally.



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