Illustration photo of NZD/USD daily chart from Tradingview
NZD/USD is currently trading around 0.7164, and trading flat early Tuesday as investors take a breather following three straight days of weakness.
President-elect Joe Biden promised “trillions” in extra pandemic relief spending last week and investors are expecting more fiscal stimulus. This lead to it should be really easy with the Democrats controlling both houses of Congress.
It is possible to gain additional downward momentum in the short-term in case the right catalysts emerge as the RSI indicator currently at the moderate territory. As reported by James Hyerczyk, He pointed out that NZD/USD a move below the level of 0.7159 indicates the seller is in control. The selling pressure possibly extends to the support level at 0.7084 if this move creates enough more downside momentum.
On the upside, he pointed out that an upward momentum and settle above 0.7150 will signal buyers is in control. This could trigger an intraday surge into 0.7232. But since it is a downtrend for the NZD/USD pair, sellers are likely to return on a test of this level.
FOLLOWME NZD/USD Overall Sentiment (As of 12:20 p.m., Jan 12, 2021),
Short - 55.09%
Long - 44.91%