NZD/USD Dilemma: Lockdown Lift and Dampened Commodity Sentiment
George Lam April 21, 2020 4:16 AM
NZD/USD does not seems to be benefiting from New Zealand's planned lockdown lift and upbeat CPI data...
However, NZD/USD, widely considered as a commodity pairing, performance does not seem to be convincing so far this week, as the recent slump in oil prices has dampened sentiment in commodity-linked currencies.
From a technical point of view, the longer term outlook for NZD/USD remains skewed to the downside as shown on the daily chart. The pair is trading with in a bearish rising wedge pattern, while the upside potential is also likely to be limited by a declining trend line drawn from December last year. Below the nearest resistance at 0.6260, and a downside break out from the wedge would suggest that potentially it is heading downward to the first and second support at 0.5840 and 0.5690 respectively. In an alternative scenario, a break above 0.6260 might open a path to the month-high in March at 0.6450 on the upside.
Source: Tradingview, GAIN capital
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