Commodity currencies are seen to be performing well towards the end of trading this week following positive vaccine sentiment supported by expectations of vaccine development while the US dollar traded weakly.
Among the major currencies that traders may overlook where there is an opportunity for potential profit is the New Zealand dollar.
After the monetary policy meeting on November 11, the Reserve Bank of New Zealand (RBNZ) maintained its interest rate at 0.25% slumped against market expectations that the central bank would announce a negative interest rate.
This situation has been a factor in strengthening Kiwi trading in the market while New Zealand economic data is also showing positive signals.
The housing sector is seen to be growing well with the increase in house prices in New Zealand until the government proposes to the central bank to consider house prices in the policy.
On the NZD / USD currency pair price chart, this week's bullish pattern continues to continue the bullish trend over the past few weeks.
The price was seen testing the resistance level of 0.70000 at the beginning of the week before the level was successfully penetrated by the price on Wednesday trading to a level of around 0.70140 thus recording the latest highest level since June 2018.
In today's trading (Thursday), the price is seen moving slowly at the 0.70000 level in the Asian session until continuing at the beginning of the European session.
With the US dollar expected to remain weak it will push prices further higher in the next session likely to reach a high of around 0.70500 to record a 2-year high.
However, be careful if there is a lower price jump below the support level of Moving Average 50 (MA50) in the 1 hour time frame of price movement that will signal a change in bearish trend.
The price decline is seen to move again below the level of 0.69300 in the RBS (resistance become support) zone which was previously the focus.
