The New Zealand dollar strengthened to around 0.6045, its highest level in over a week, supported by improved global risk sentiment following a breakthrough U.S.–Japan trade agreement.
The agreement, which lowers tariffs and boosts bilateral investment, triggered a surge in Japanese markets. Japan’s Nikkei 225 index jumped more than 3%, hitting a one-year high.
The breakout in NZDUSD was accompanied by a series of bullish candles with little to no upper wicks, evidence of minimal rejection from sellers. The most recent candles are consolidating just below the 0.6055 zone, which aligns with minor resistance from July 4.
Rejection from this area—especially if it prints a bearish engulfing or shooting star pattern—could signal a short-term pullback. On the downside, immediate support is now at 0.6000. If broken, the next support potentially lies around 0.5980, which was the last major swing low before the breakout.
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