The NZD/USD is near 0.63200 as of this writing with quick price action being displayed. Holiday trading is certainly affecting the NZD/USD and its trading results are producing a rather large support and resistance range. Traders need to monitor their positions closely and risk-taking tactics should probably be using specific take-profit and stop-loss ratios to protect against volatility.
Gains Produced have NZD/USD within the Middle of its Month Chart Range
Since reaching a high above the 0.65080 ratios on the 13th of December the NZD/USD has seen some selling. The bullish trend the NZD/USD has enjoyed since the middle of October has been noteworthy and the recent selloff may have caught bullish speculators off guard. The accomplishment of the climb from the depths of 0.55190 in October to the price of the NZD/USD now should be considered, the currency pair has done a worthy job of recapturing value.
Lack of Trading Volume Opens Door to Potential Volatility in the NZD/USD
The absence of large institutional traders in the NZD/USD during the holiday season is a reason for concern. What appears to be polite and quiet Forex can suddenly develop into volatility if a large NZD/USD order is launched. The ability of the NZD/USD to resume an upwards trend since last week may continue to attract bullish speculators.
Traders who want to buy the NZD/USD are probably not looking for support ratios near 0.62400 to be tested anytime soon, the vicinity of 0.63000 to .62750 might be more inviting if these values are tested below. Fast trading results in the NZD/USD are being seen and the currency pair is delivering opportunities for speculators who like to bet.
- If the NZD/USD were to hit the 0.62800 mark it would appear to be oversold, if this mark is tested it may be an interesting place to launch a buying position.
- If the NZD/USD can climb above the 0.63400 mark and sustain this price action if might be taken as an additional bullish signal.
The problem for the NZD/USD is that holiday trading is certainly taking place and because of this price action is quick. Traders stepping into the currency pair today need to use risk management to protect their accounts. While some traders may believe the NZD/USD will recapture its bullish trend higher, the holiday trading season may not be the place to ‘cement’ this belief.
NZD/USD Short-Term Outlook:
Current Resistance: 0.63460
Current Support: 0.63100
High Target: 0.63710
Low Target: 0.62700
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