The NZD/USD has been battling within the higher part of its mid-term price range since the start of December, and short-term traders should be braced for more speculative fights.
The NZD/USD is near the 0.63950 realms as of this writing with its typically fast results being demonstrated for all traders to see. A volatile mix of technical highs and important data awaits the NZD/USD. The currency pair continues to sustain its higher price realm but suffers from rather strong reversals lower when the upper ratios near resistance become a flirtation.
U.S Consumer Price Index Statistics and the Federal Reserve Coming from the States
As the NZD/USD continues to trade within sight of the 0.64000 ratio, but has shown an inability thus far to sustain the momentum above, the U.S will release Consumer Price Index data later today. If the inflation numbers from the States are not enough to make technical traders care, perhaps the reminder the U.S Federal Reserve will issue the results of its FOMC meeting on Wednesday will be enough to raise concern. Risk management should be used by speculators aggressively in the short term.
A low of about 0.63740 was produced this morning in the NZD/USD, but a high slightly above 0.64040 was also seen earlier today. The currency pair continues to stay within sight of higher price ratios, Friday’s and yesterday’s highs which traversed near the 0.64200 vicinities may look attractive. However, the risk does shadow the broad Forex market. If inflations number from the U.S are stronger than expected this could cause nervousness to creating a selling mode as a reaction.
Short-Term Nervousness Equals Short-Term Wagering Opportunities in the NZD/USD
Speculators should remain vigilant today and tomorrow. The upwards trend created in the NZD/USD since the middle of October remains attractive, but the speculative road does contain the danger of reversals. Inflation concerns in the U.S will keep the U.S Federal Reserve active regarding interest rate hikes. However, the bigger question is if the U.S central bank will start to become less aggressive because business growth is starting to weaken.
- If U.S inflation targets via CPI numbers today come in around expectations and the U.S Federal Reserve ‘only’ raises its interest rate by 0.50%, this could actually be slightly bullish for the NZD/USD.
- While traders may believe the phrase buy the rumor and sell the fact is appropriate for the NZD/USD, the currency pair has seen moves above 0.64000 already, so it remains a target.
Short-term volatility will definitely be seen in the NZD/USD today and tomorrow. Traders pursuing short-term wagers will need to be extremely careful. Looking for upside price action after slight bursts of selling pressure, to try and take advantage of a potential move higher may be enticing and worthwhile in the NZD/USD. Traders should keep their price targets realistic and not aim for the stars and cash in winnings with taking profit orders working.
NZD/USD Short-Term Outlook:
Current Resistance: 0.64010
Current Support: 0.63710
High Target: 0.64490
Low Target: 0.63490
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