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Risk taking was the name of the game during the Asian session.

Can London session traders keep the party going for the bulls?

Before we check out NZD/USD’s setup, here are the major headlines you might have missed in the last few hours:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Switzerland’s CPI at 6:30 am GMT
  • Spain’s unemployment change at 7:00 am GMT
  • Italy’s unemployment rate at 8:00 am GMT
  • Euro Zone’s PPI at 9:00 am GMT
  • Euro Zone’s unemployment rate at 9:00 am GMT
  • U.S. NFP numbers at 12:30 pm GMT

What to Watch: NZD/USD

NZD/USD 1-hour Forex Chart
NZD/USD 1-hour Forex Chart

Positive reports from the U.S. and euro zone as well as fresh vaccine development updates brought the bulls to Kiwi’s yard earlier today.

Not everyone is convinced, though, especially after the U.S.’ coronavirus cases shot higher and inspired some states to take a chill pill on their reopening plans.

Can the bulls sustain their momentum? NZD/USD is knocking on the .6500 major psychological handle, which lines up with a range resistance on the 1-hour time frame.

Traders will watch the U.S. NFP releases for direction today. Keep in mind that markets will likely price in spikes in coronavirus cases and pauses in reopening plans when looking at June’s numbers.

Anything below the anticipated 3 million job gains will likely inspire risk aversion as more traders give up on the V-shaped recovery estimates.

If we see stronger-than-expected U.S. jobs numbers, however, then NZD/USD could break above its 1-hour range and rise by another 40 pips or so as NZD/USD’s daily volatility suggests.