After being pushed back from highs made early last week, NZD/USD could be ready to resume its bullish trend.
The NZD/USD has been within the midst of a long-term bullish trend, but did suffer a push backwards recently and touched short-term lows of nearly 0.71500 on the 11th of January. After making highs on the 6th of January when the NZD/USD tested the 0.7312 mark, the Forex pair reversed lower as the USD exhibited short-term strength. However, the past couple of days of trading have clearly shown the ability of the New Zealand dollar to sustain and recapture its momentum higher, and its current price vicinity may prove tempting for speculators.
Traders taking a glance at short-term technical charts may believe that support ratios of 0.71810 look quite adequate, and below the juncture of 0.71500 could prove to be exceptionally durable if another bearish leg were to emerge. The NZD/USD also remains intriguing within the middle of its upper range, and it is traversing these heights as behavioral sentiment still seems to glowingly demonstrate a solid case for further bullish momentum to develop.
Resistance levels near the 0.72130 juncture are likely the target for traders who have their eyes on higher values. However, before this higher mark becomes the focus, the 0.72000 level must be punctured higher and values need to be sustained over this important inflection point. After hitting a high of 0.72360 in early trading yesterday, the NZD/USD did see a reversal lower and the 0.71700 was tested.
Speculators who choose to pursue buying opportunities of the NZD/USD may be enticed by the long-term trend and recent price action which have seen the New Zealand dollar able to maintain its stronger values. Short-term traders should be careful to not get too greedy if they are buyers and believe that the NZD/USD has the capability of recapturing highs made the first week of January, when the Forex pair traded above the 0.73000 level.
However, the higher values made by the NZD/USD in early January may be a strong signal regarding the potential of the Forex pair to mount an upward trend, and speculators could find this consideration encouraging for their bullish sentiment. The NZD/USD does look like a worthwhile speculative buying opportunity for traders. Buying the Forex pair around its current price vicinity of 0.719500 to 0.71890 appears attractive.
NZD/USD Short-Term Outlook:
- Current Resistance: 0.72130
- Current Support: 0.71810
- High Target: 0.72510
- Low Target: 0.71500