NZD/USD Price Analysis: Kiwi jumps to test critical resistance around 0.6620

  • Kiwi outperforming during the American session as USD tumbles and modest improvement in risk sentiment.
  • NZD/USD rises to the upper limited of a short-term descendant channel.

A weaker US dollar across the board boosted the NZD/USD pair that outperformed on the back of a stronger kiwi. The pair broke above the 0.6570 resistance, gaining more strength.

So far, NZD/USD peaked at 0.6619, the highest level in a week. It continues to trade around the 0.6615/20 area, a key short-term barrier that contains an horizontal resistance and the upper border of a descendant channel.

A consolidation above 0.6620 would point to more gains targeting 0.6640 and above the last week high at 0.6650. While if NZD/USD fails at the current level, the channel will remain in place, suggesting weakness ahead. The immediate support stands at 0.6595 followed by 0.6565.

NZD/USD 4-hour chart

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