The NZD/USD has produced a slight upwards capability since touching lower depths on Friday, but the currency pair’s polite short-term bullish movement is likely going to be questioned.
- The NZD/USD is near the 0.59455 ratio as of this writing.
- The currency pair has managed to produce upwards momentum since touching a low on Friday near the 0.58535, but this jump needs to be viewed within the context that the move occurred when geopolitical worries hit the broad Forex market early on the 19th.
- The NZD/USD had been trading near the 0.58960 mark before Middle East news hit Forex and when the USD was sought as a safe haven during that short fast downward spiral.
The move up from the 058960 element is still significant as values are looked at today, but it is not as big as some speculators may believe if they are trying to find reasons to remain positive about additional potential climbs in the NZD/USD in the near-term. Speculators outside of New Zealand also need to take in mind that Thursday is ANZAC Day, which means banks will be closed in the nation and many people will take a long weekend holiday. The lack of volume in the NZD/USD as this week concludes could produce awkward spikes which should be viewed suspiciously.
Current Price Level Consideration in the NZD/USD
The NZD/USD is essentially testing values that it saw last Monday the 15th of April. The currency pair took a dive lower on Tuesday and Wednesday of last week when U.S Federal Reserve Chairman Jerome Powell said the Fed is uncertain about its outlook due to inflation remaining stubborn. The additional move lower for the NZD/USD occurred when CPI data from New Zealand also remained rather sticky, but the ability of the currency pair to bounce back above the 0.59000 level and show sustained trading the past two days may help solidify the notion of support levels below this mark.
The U.S however will publish important growth and inflation numbers on Thursday and Friday. Because of the holiday in New Zealand on Thursday, some financial houses may have tried to position for the GDP numbers tomorrow which not only include growth statistics, but the GDP Price Index too from the U.S which gauges inflation. If the numbers come in weaker from the U.S tomorrow this could help NZD/USD bullish perspectives going into Friday.
Dangers of Lower Volumes in NZD/USD
- The NZD/USD is a favorite of many Forex speculators because its normal trading volumes offer the potential of quick price action, but the lower volume on Thursday and this Friday could prove to be too dangerous.
- Resistance levels up ahead near the 0.59500 ratio should be watched carefully. Any trading that can be sustained above this mark will attract interest from both bears and bulls in the NZD/USD.
- Traders should be careful over the near-term because of the ANZAC holiday; volatility in the NZD/USD could be sudden.
NZD/USD Short Term Outlook:
Current Resistance: 0.59510
Current Support: 0.59405
High Target: 0.59565
Low Target: 0.59150
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