NZDUSD starting to look bullish again

The greenback came under broad selling pressure this week and the NZDUSD pair capitalized on it, having broken above the critical resistance of 0.62.

This level is crucial for the near-term trend as it used to be a major support for the pair. The kiwi broke below this support during the coronavirus sell-off, but the dip was quickly bought and if the pair settles above 0.62, it could be a strong bullish signal. These false bearish breakdowns usually lead to a significant rally.

The next target for bulls should be at the long-term bearish trend, which is currently at around 0.65. If this level is taken out, the long-term bearish trend could be over and we may see another leg higher toward 0.70.

Alternatively, if the NZDUSD pair fails to hold above 0.62, there could be a stronger decline toward the psychological level of 0.60.

Please keep in mind, that this is a long-term point of view, not for a short-term trade.

The US dollar might continue to weaken as the Fed is printing trillions each month, which should have inflationary pressures in the USA.

 
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