The New Zealand Dollar is up sharply for a third session this week on Wednesday as the prospects of a rapid global economic recovery following the coronavirus-induced collapse in world growth increased investors’ appetite for riskier assets. Meanwhile, the U.S. Dollar continued to lose its appeal as an active port, encouraging investors to dump the greenback for higher-risk currencies.
Kl. At 3:36 GMT, NZD / USD is trading at 0.64%, up 0.0041 or + 0.64%.
Funds continue to move towards economies that are seen to recover faster after the coronavirus pandemic.
External factors also support prices. In China, a private study showed the service sector of the world’s second-largest economy returned to growth, which could bolster expectations of economic recovery. In addition, global government stimulation globally also helped overshadow a number of other coronavirus concerns to Hong Kong and growing U.S. civil unrest.
Daily technical analysis of the swing diagram
The main trend is up according to the daily swing chart. The trend was confirmed early Wednesday as buyers pulled out yesterday’s high of .6371.
A trade through the near scalp of .5921 changes the trend down. However, this is unlikely.
Meanwhile, the NZD / USD is currently within the time window of a closing price for chargeback considering the extended rally in terms of price and time. This chart pattern does not change the downward trend, but it can trigger a 2-3 day correction.
Daily technical weather fluctuation
Based on the early price measure, the direction of NZD / USD for the remainder of the session on Wednesday is likely to be determined by the trader’s response to yesterday’s close of 6369.
A sustained move above .6369 will indicate the presence of buyers. This could trigger an increase in the main peak March 9 at .6448. Although we could see some earnings at the first test at this level, it should also be treated as a potential trigger point for an upside acceleration. The daily chart shows there is plenty of room for the head with the July 19, 2019 main peak of .6791, which is a longer-term upside target.
A persistent move below .6369 will signal the seller’s presence. This will enable NZD / USD to reverse the closing price. If confirmed on the daily chart, look for the start of a possible 2 to 3 day correction.