The NZD/USD hit the 0.62070 ratio early Wednesday, the last time this value had been attained was on the 1st of August. The upward climb in the NZD/USD has been rather consistent since the start of November, and bullish traders who have been wagering on buying to continue have likely been rewarded if they have avoided momentary reversals lower.
This brings up the constant point, that Forex is never a one-way direction, day traders can be hurt by sudden shifts and need to understand that using take-profit orders to protect winnings is important. The use of leverage makes even the smallest of price changes significant for day traders who have limited accounts, risk-taking tactics in the NZD/USD are needed to participate in the currency pair.
The currency price of the NZD/USD is near the 0.61640 ratio, this value is still near mid-term highs last seen in August. Yesterday’s Official Cash Rate from the Reserve Bank of New Zealand met expectations as the borrowing costs were held in place. Today a Business Confidence report came in better than last month’s outcome from New Zealand. The election of a business-friendly government in New Zealand has certainly given financial institutions a reason for better sentiment domestically too.
Support for the NZD/USD Short-Term near 0.61300 Intriguing
Technical traders are likely looking at the short-term values of the NZD/USD and see the 0.61300 support level as meaningful. Trading above this level is testing mid-term highs. Certainly, if the 0.61200 mark can be maintained in the near term this could prove significant and signal additional buying sentiment remains lurking.
Global Risk Appetite Appear Steady and Helps the NZD/USD
- Traders should continue to monitor risk sentiment in global Forex markets. The USD continues to show signs of weakness via financial institutions outlooks for the mid-term.
- Short-term traders certainly must be prepared for the potential of reversals lower and need to use stop loss orders if they are pursuing higher values in the NZD/USD.
Trading into the weekend may prove choppy; U.S Treasury markets may affect sentiment regarding yields. If U.S bond yields are weaker the NZD/USD could see more bullish momentum. Some financial institutions may believe fair market equilibrium has been found in the NZD/USD and want more impetus before remaining strong buyers. Risk appetite if sustained could help the cause.
NZD/USD Short Term Outlook:
Current Resistance: 0.61725
Current Support: 0.61470
High Target: 0.61960
Low Target: 0.61250
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