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We won’t see major data releases during the early London session, so traders will likely look to broad market themes for direction.

Will NZD/USD see more dollar strength?

I’ve got a setup I want to show you… AFTER you read through the major headlines that popped up in the last coupla hours!

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

Upcoming Potential Catalysts on the Economic Calendar:

  • MPC’s Broadbent to deliver an online speech at 10:00 am GMT
  • NFIB small business index at 11:00 am GMT

What to Watch: NZD/USD

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

NZD/USD encountered support at the .7150 minor psychological level after falling by more than 100 pips from its January highs.

The pair’s current levels is a good place to start if you’re one of them Kiwi bulls who believe that NZD/USD’s “pullback” stops at the previous support and resistance area.

Meanwhile, Kiwi bears can wait and see how NZD/USD trades after breaking its current consolidation.

If it pops higher, then you can watch how the pair reacts to the SMAs near .7225. A bounce from the resistance could lead to a revisit of the .7150 support. If NZD/USD breaks below its consolidation, however, then the .7100 and .7075 levels are ones you should watch.

For those who have just tuned in, know that the Greenback has been kicking pip butt this week as traders worry over rising coronavirus cases around the world and political tensions in the U.S.

Let’s see if traders go back to risk-taking mode in the next trading sessions.