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.
