NZDUSD back near strong resistance

11/02/2021

As the greenback loses ground again, the Kiwi managed to book some gains, with the NZDUSD pair trading 0.4% higher on Thursday, hovering near 0.7245.

That seems to be an important resistance where the price has stopped a couple of times. If that level is broken to the upside, stop-losses of short positions will be hit, which might push the NZDUSD pair further higher.

The next target could be at the current cycle highs near 0.73. Failure to defend this level might send the Kiwi toward 0.75 in the medium-term.

Alternatively, if the pair fails to jump above 0.7250, profit-taking might occur, which might drag the pair back to 0.72.

Fundamentally, the USD should continue to decline, and the latest correction might be over, reinforcing the bullish view on this pair. 
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