The NZD/USD had delivered a flurry of whipsaw reversals which likely have caused considerable pain to speculators who have not been using proper risk management.
The NZD/USD is near the 0.64050 vicinities as of this writing with rather a quick price action being demonstrated. The last five days of trading within the NZD/USD have produced strong whipsaw movements in the currency pair, but technically the results can be interpreted as having achieved an incremental climb in value.
Yesterday’s High Still within Sight for NZD/USD Speculators
The NZD/USD traded near the 0.64260 ratios yesterday, this apex had last been seen in the middle of December, when the Forex pair was able to climb to 0.65150 momentarily. Through all of the trading battles displayed over the past month in the NZD/USD the currency pair has been able to fight near its higher ratios. Yes, strong reversals lower have occurred too, and this needs to be kept in mind by traders who want to pursue higher values, risk management is essential when wagering on the NZD/USD.
The impact of Data may be Limited this Week in the NZD/USD
Last week’s U.S Consumer Price Index data certainly caused mayhem in the NZD/USD. The high attained on Friday near 0.64175, after trading near a low of around 0.63025 when a large selling order jolted the currency pair momentarily is a reminder of potential whipsaw price action. The reaction to weakening inflation in the U.S has seemingly had a positive effect on the NZD/USD, which mirrors the results in the broad Forex market.
However, this week is not going to have a significant fundamental trigger regarding data for the NZD/USD. Data regarding dairy prices in New Zealand early tomorrow from the nation are not going to cause bedlam for the NZD/USD. Instead, the NZD/USD may be more about technical trading and existing behavioral sentiment generated from the previous five days and expectations regarding an outlook.
- The 0.64000 level may prove to be important, if the value can be sustained above in the short term this may be a bullish indicator.
- Risk tactics should be thought out in a logical manner with solid stop-loss orders for traders. The recent price range of the NZD/USD has been violent, even if it has produced an incremental climb.
Traders cannot be blamed for continuing to pursue buying positions of the NZD/USD while targeting realistic goals. The trend of the NZD/USD has been rather solid and the currency pair has been able to maintain its higher stance when a three-month chart is inspected.
NZD/USD Short-Term Outlook:
Current Resistance: 0.64125
Current Support: 0.63775
High Target: 0.64390
Low Target: 0.63310
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