29.04.202111:17 Forex Analysis & Reviews: Technical analysis and recommendations for NZD/USD on April 29, 2021

It's time to analyze the New Zealand dollar against the US dollar. Although the next trading week and the current month are inexorably approaching their end, today's review of the NZD/USD pair will begin with a weekly chart.

Weekly

Once again, I would like to draw your attention to the fact that after the circled bearish reversal candle, the pair moved to a downward trend. However, the decline stopped near the most important psychological and technical level of 0.7000, and the course again turned in the north direction. When such important round levels have a drastic impact on the price dynamics of a particular instrument, this phenomenon is quite natural. In this case, the price area of 0.7000-0.6940 was intended to play strong support and stop the further decline of the quote. As a result of the change in price dynamics and upward orientation, the pair were not allowed to go above the red line of the Tenkan Ichimoku indicator at last week's trading.

However, at the current five-day trading session, the NZD/USD is already trading above the Tenkan, giving higher prices. As already mentioned in one of the recent reviews of this currency pair, in addition to the mark of 0.7000, the levels of 0.7100 and 0.7200 are very difficult to pass and significant for the market. At the time of writing, the pair is trading near 0.7242 and, if the upward scenario continues, it will face another fairly strong resistance area of 0.7300-0.7310. Overcoming this area will open the way for the New Zealander to retest this year's February highs at 0.7461. A bearish scenario is possible only after the consolidation under 0.7000 and the subsequent breakdown of the support level of 0.6940.

Daily

Yesterday's results of the two-day extended meeting of the Federal Reserve and the press conference of the head of this department, Jerome Powell, put pressure on the US dollar. The pair significantly strengthened. However, in today's trading, the continuation of growth does not yet give the necessary results. After rising to 0.7283, the sentiment for the pair changed, and at the end of the article, the kiwi bulls lost all of today's growth. Moreover, the pair is now trading with a slight decline.

Nevertheless, if you give any trading recommendations, then I consider the main purchase after a corrective pullback to the area of 0.7240-0.7230. More aggressively and riskily, you can try to open long positions from the current market prices. As for sales, they are presented only in the expectation of a correction and therefore are riskier. In addition, the pair has already declined sufficiently, which means that the time for selling is lost since the upward scenario can resume at any time. At the same time, we should not ignore the fundamental reports from the US on GDP and initial applications for unemployment benefits. Perhaps this data will affect the course of trading on the US dollar in general and on the NZD/USD currency pair in particular.