Speculators are warned not to get overconfident and to remain humble as the NZD/USD continues to demonstrate a serious amount of price momentum upwards. As of this writing the NZD/USD is trading near the 0.61700 ratios, after trading slightly above the 0.62000 mark yesterday. The NZD/USD has a habit of producing dynamic trends. After suffering from a long-term bout downward which reflected the broad Forex market, the NZD/USD is now demonstrating an ability to gain.
Since Trading around the 0.55200 on the 13th of October the NZD/USD has climbed
Traders need to remain realistic about their price targets and use risk-taking tactics carefully in the NZD/USD. The trend upwards which has emerged has been strong, but it has certainly produced significant reversals lower on occasion. Economic data seems to indicate the U.S Federal Reserve will have to consider becoming less hawkish regarding interest rate policy and global financial houses seem to have acted upon this notion as the USD has gotten weaker against many major currencies in recent weeks.
Traders who want to look for more upside action cannot be blamed, but they need to guard against the real likelihood of moves lower which can punish the pursuit of higher values. The NZD/USD is now challenging ratios it has not traded in a sustained manner since August of this year.
Realistic Goals and Quick Hitting Trades should be Targeted Perhaps
The 0.62000 mark certainly looks enticing, but it should be treated with respect. Perhaps quick hitting short-term wagers aiming for 0.61900 may be better for many day traders. If that proves successful and conditions prove bullish a trader can always put on another position to pursue new targets.
- Short-term support near the 0.61600 mark looks to be interested as stop loss protection via current price conditions.
- If that support level fails the NZD/USD could certainly propel lower depths, but it does look like support near the 0.61350 to 0.61200 levels could be durable.
Conservative amounts of leverage are encouraged for NZD/USD trades. The currency pair remains tempting as a wager for bullish traders and will likely continue to demonstrate these conditions in the near term, but there are not guarantees.
If the 0.61900 is challenged short-term by the NZD/USD and the 0.62000 is surpassed and sustained, traders looking for additional targets upwards should look at 6 month technical charts. The long-term bearish trend of the NZD/USD may be dying, and now may be the moment to try and take advantage of it while remaining calm and not becoming overly ambitious.
NZD/USD Short Term Outlook:
Current Resistance: 0.61905
Current Support: 0.61390
High Target: 0.62510
Low Target: 0.61110
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