The NZD/USD is near the 0.62335 ratio as of this writing. Yesterday’s low for the NZD/USD traversed around the 0.60845 mark; the depth occurred as speculative positions by larger players braced for the coming rhetoric via the U.S Federal Reserve. The Fed’s FOMC Statement sparked buying, the bullish surge in the NZD/USD was strong and resistance levels were penetrated swiftly.
This morning’s high in the NZD/USD reached the 0.62500 vicinity. The slight reversal lower since then has seen choppy conditions emerge as financial institutions likely consider where potential equilibrium exist after the U.S Federal Reserve’s change of rhetoric, which essentially outlines the potential for a dovish monetary policy to begin in the spring of 2024. The NZD/USD went up because of FOMC Statement and Fed’s press conference yesterday – yes, it is that simple.
July 2023 Values in Sight for NZD/USD Speculators
Bullish traders who were lucky enough to be part of the rocket blast upwards yesterday in the NZD/USD may want to take a day or two and relax. There is sometimes a keen desire to begin overtrading when a satisfying profit has been made in Forex, which opens the door to pure gambling and the potential to loss all the money that has been gained. The NZD/USD is now testing higher values it has not seen since the last week of July 2023.
Resistance was sparked early this morning as some selling certainly happened around the 0.62400 and higher ratios. Short-term speculators may want to continue to search for higher values today and tomorrow, but they will need to understand the sudden burst higher in the NZD/USD demonstrated a significant amount of price velocity, which likely means a momentary crawling motion will be exhibited with potentially choppy conditions.
Short-Term Considerations via Support as a Potential to Ignite NZD/USD Buying
The ability of the NZD/USD to penetrate the 0.62175 ratio and sustain momentum higher was important yesterday. Traders may look at the 0.62200 ratio as of this morning in the NZD/USD as potential support targets for possible reversals lower should they develop.
- Conservative day traders may want to wait for reversals lower to occur in the NZD/USD to be seen in order to look for other additional moves higher.
- Traders should not look for overly ambitious surges upwards and use realistic take profit targets.
- If the NZD/USD can sustain values above the 0.62300 ratio this would be an indication financial institutions may be keeping their eyes on potentially higher ground to be attained.
- However, the move higher displayed over the past twelve hours in the currency pair has been huge and some large players may think fair market price has been achieved for the time being.
NZD/USD Short Term Outlook:
Current Resistance: 0.62400
Current Support: 0.62270
High Target: 0.62550
Low Target: 0.62090
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