Home Forex News A Momentum Shift in NZD Could Lead to Test of 0.6490–0.6465

A Momentum Shift in NZD Could Lead to Test of 0.6490–0.6465

The New Zealand currency (NZD) woke up to a rude shock on Friday as it began trading lower after reaching the highest level since the last week of January. After an extended surge in time and price, the NZD posted a falling closing price reversal at the top, which is common during an uptrend. It does suggest that selling is greater than buying just below the main top at 0.6629. If this gets eventually confirmed, the closing price phenomenon should trigger that initiation of a 2 to 3-day counter-trend break. As per the last confirmed reports, the NZD/USD was trading at -0.23%.

On the other hand, the surging demand for the US dollar has helped to drive the NZD to lower levels. The USD, along with other so-called safe-haven currencies, were well bid on Friday following the detection of new Coronavirus cases in the US, which undermined any chance of a quick economic recovery. It is alarming to note that more than 60,000 new cases of COVID-19 infections were reported across the country a couple of days back, which has severely dented the confidence of the native consumers to make a return to public spaces.

Financial experts claim that trading through 0.6600 will help to make ineffective the closing price reversal top and thereby initiate the restart of an upward tendency. The minor trend is on the up and it will surely change to down on the move through the last minor bottom at 0.6519 and this scenario will confirm a change in momentum. Going by the closing price reversal on the top yesterday and the early price scenario, the direction of the NZD/USD is going to be governed by the trader reaction to the Thursday’s low of 0.6551.

Marisol Contreras
Marisol is a crypto analyst and crypto trader. She invests in various cryptocurrencies and has a great idea about the finance market. She works as a chief editor of our team and makes the latest crypto news. She can be contacted by email: marisol@forexnews.world.

Must Read

Banxso: Earn Huge Returns with Its Benefits!

About Banxso Thousands of trading platforms online have emerged with the adoption of the internet, and now they are paving the way for a range...

Is Investing in Stellar Lumens (XLM) a Good Idea?

Introduction to Stellar (XLM) Stellar is a decentralized cryptocurrency exchange platform that lets users create and trade various cryptocurrencies. The Stellar platform was created in...

3 Factors That Influence Cardano Price

Introduction to Cardano Cardano is a 3rd generation decentralized application(dapp) development and public blockchain platform. Investors are paying attention to Cardano's unique built-in review research...

Buterin Reveals How He Burned Almost $7B Worth of Shiba Inu (SHIB)

Vitalik Buterin, a Co-Founder of Ethereum, spoke to the UpOnly podcast. He admitted to burning Shiba Inu tokens worth $7 billion. Vitalik Buterin burned...

Microstrategy CEO Won’t Sell $5 Billion in BTC Despite Crypto Winter

Despite the fact that the value of Bitcoin (BTC) has dropped by 40%, MicroStrategy's Michael Saylor has no plans to sell his $5 billion...