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A slew of pro-Kiwi updates pushed the comdoll to the top of the forex heap today.

Can the bulls maintain the momentum during the London session?

Before I show y’all what I’m looking at, check out the top headlines that rocked the forex market scene:

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

Upcoming Potential Catalysts on the Economic Calendar:

  • Spain’s services PMI at 8:15 am GMT
  • Italy’s services PMI at 8:45 am GMT
  • France’s final services PMI at 8:50 am GMT
  • Germany’s final services PMI at 9:30 am GMT
  • U.K. final services PMI at 9:30 am GMT
  • Eurozone’s CPI flash estimate at 10:00 am GMT

What to Watch: NZD/USD

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

In case you missed it, the New Zealand dollar became the top boss of the Asian session after:

  • New Zealand printed (much) better-than-expected jobs numbers in Q4 2020
  • The country’s regulators approved its first COVID-19 vaccine (Pfizer)
  • Today’s strong dairy auction results prompted upgraded forecasts for dairy prices
  • Asian traders took riskier bets over U.S. stimulus and vaccine optimism

As a result, NZD/USD popped up by about 50 pips when the pair sees around 70 pips of movement on a regular Wednesday.

The pair is now stuck just under the .7225 range resistance that has been keeping the bulls contained since early January.

Can the bulls maintain their momentum now that Stochastic is hanging out at the overbought area?

If today’s Eurozone PMI and CPI reports come in weaker than markets are expecting, then we could see low key risk aversion that could drag NZD/USD to the .7190 inflection point or even the .7170 mid-range levels.

But if traders keep calm and carry on with their risk-taking, then NZD/USD could break above its January range and head for previous areas of interest near .7250 or .7280.