FxWirePro: NZD/USD hits 4-week high, improving risk sentiment and broad USD weakness support

NZD/USD chart - Trading View 

NZD/USD was trading 0.98% higher on the day at 0.7064 at around 10:15 GMT, outlook has turned bullish.

The pair has confirmed breakout of Sloping Wedge pattern, raising scope for further upside.

The market mood remains upbeat after the Fed and despite weak Chinese data, the antipodeans remain bid.

Easing covid numbers along with receding odds for monetary policy adjustments boost the broadly risk-on mood.

Technical indicators for the pair are turning bullish. Bullish 5-DMA crossover on 20-DMA adds to the upside bias.

Momentum indicators are bullish and volatility is high. Bullish MACD line crossover on signal line supports further upside.

Bullish divergence on RSI from price action on the daily charts aids bulls in the pair. ADX is also rising in support of the current uptrend.

US Chicago Board Consumer Confidence figures may direct short-term trades ahead of the key NFP data on Friday.

Major Support and Resistance Levels: 

Support - 0.7037 (110-EMA), Resistance - 0.7111 (200-DMA)

Summary: NZD/USD has shown a decisive break out of Sloping Wedge pattern. Major bias is turning bullish, while near-term trend confirms upside. 

Price action has tested 50% Fib and is on track to test next major resistance at 200-DMA.