NZD/USD looks towards 0.7200 again as risk sentiment stays more upbeat

Technical Analysis

Author: Justin Low | nzdusd

The risk-on vibes gather a bit more pace in European morning trade

European indices are now up by 1% mostly while S&P 500 futures have extended gains to 0.7% on the session currently. In turn, that is putting a further bid in the kiwi with the dollar easing a little across the board.

NZD/USD H1 02-02
NZD/USD is now up to a session high of 0.7193 as buyers test the 200-hour moving average (blue line) @ 0.7187. Break above and the near-term bias turns more bullish but keep below and the bias stays more neutral for the moment.

The 0.7200 level will pose a further challenge for buyers before getting to the swing region around 0.7223-25 as well as the key trendline resistance @ 0.7225 as well.

As things stand, we are starting to adjust back to more "normal" market conditions as things are looking to settle down following the retail trading frenzy episode.

There will still be plenty of focus on the likes of GME and AMC in the coming days/weeks but for now, the market looks to be acclimatising to all of the recent developments; thus, exuding a calmer mood as we get things going in February trading.

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