FxWirePro: NZD/USD opens the week on a positive note, outlook bullish

NZD/USD chart - Trading View 

NZD/USD was trading 0.57% higher on the day at 0.7216 at around 06:45 GMT, erasing most of previous session's gains.

The pair is extending choppy trade above 21-EMA support, outlook remains bullish.

The kiwi slipped lower on Friday's trade amid reports of covid variant in Northland. The country has been so far immune from pandemic after the first hit.

Doubts about U.S. stimulus remain as some of the US Democratic Party members are unsure of backing Biden's second stimulus, adding to the market’s risk-off mood.

The kiwi is currently tracking the Australian dollar higher, news of TGA (Therapeutic Goods Administration) approval for use of Pfizer/ BioNTech COVID-19 vaccine buoyed the antipodeans.

Technical bias for the pair is bullish. Analysis of GMMA indicator shows major trend is bullish. Dips have bounced off 200H MA support.

Momentum on the intraday charts is bullish. The pair eyes trendline resistance at 0.7240. Break above will see upside continuation.

Next major bull target lies at 88.6% Fib at 0.7320. Retrace below daily cloud will negate any bullish bias.

On the data front for the upcoming week, focus will on the preliminary estimate of the US Q4 GDP along with Fed monetary policy meeting for impetus.