The New Zealand Dollars is on the uptrend to the upside as optimism about a global recovery from the COVID-19 pandemic is attracting the investors. NZD/USD rose a little in the earlier session but was low than last week highs.

Kiwi was able to achieve multi-month highs as the U.S. Dollar weakened as investors shed safe-haven positions. The major reasons behind the surge in prices were the reopening of economies and China stimulus expectations.

Wider market sentiment also supports NZD’s gains. The futures of the S&P 500 are currently recording 0.25% gains. The index was up 1.23% on Tuesday. Bulls are only distracted because of growing tensions between the US and China. US Senator Rubio issued a tweet early Wednesday, warning that the United States would have no choice but to impose sanctions on China if the Dragon nation passes the Hong Kong Security Bill.

Adding to the positive sentiment, the central bank of China said it would strengthen economic policy and push for lower interest rates on loans.

We expect an uptrend for the pair. If the bull trend continues we could see NZD/USD breaking 0.6182(R1) and aim for 0.6217(R2) and if the bear markets take over then we can expect it to break at 0.6087(S1) and aim for next 0.6028(S2).

NZD/USD 4 Hour Chart:

Support: 0.6087(S1), 0.6028(S2), 0.5933(S3).

Resistance: 0.6182(R1), 0.6217(R2), 0.6312(R3).

The catalyst has lead optimism in trading NZD/USD.