NZD/USD: Long-Term Charts Now the Focus for Bull Speculators

The NZD/USD continues to prove resistance is vulnerable as its strong bullish run generates more power.

The past week of trading within the NZD/USD has conquered mid-term resistance levels rather easily and speculators with an eye on higher targets may need to focus on long-term charts to contemplate potential next moves. The New Zealand dollar is traversing values it has not sustained since March of 2018 and, if upwards momentum continues to be demonstrated, January 2018 values could be next upon bullish traders’ wish lists.

As the NZD/USD traverses within a breath of the 0.74000 resistance level, traders should remember that Forex is never a one-way avenue. Reversals lower must be anticipated and accounted for regarding perceptions, but this does not mean a speculator should necessarily be considering a selling position of the NZD/USD within its current value range. Instead, the use of stop losses with support ratios working as protection should be considered.

The trend of the NZD/USD has proven durable, and its march higher while overdue for a selloff may prove difficult to time. Speculators should contemplate continuing to pursue the NZD/USD as a buying position, and if the Forex pair does break through the 0.74000 resistance juncture, a sustained duration of trading above this value may be an indicator that higher realms are possible.

Short-term traders should not become overly greedy under the present conditions of the bullish momentum. Traders should stick to their speculative philosophies and not keep positions open for too long if they are unaccustomed to such endeavors. It may be better emotionally for speculators who are day traders to cash in profits and not let them vanish into thin air and grow tense. Today’s early puncturing of the 0.73500 juncture higher certainly activated additional buying momentum into the NZD/USD. The ability of the Forex pair to maintain its higher values short term is a solid signal.

Remaining a buyer of the NZD/USD is a logical trading decision which cannot be faulted. However, traders need to remain cautious regarding their leverage and not expect upwards movement to remain unchallenged forever. Buying the NZD/USD on slight reversals lower may prove to be a worthwhile trade for conservative speculators who are nervous about the higher values the New Zealand dollar has attained in the past week as it has brushed aside resistance levels rather easily.

NZD/USD Short-Term Outlook:

Current Resistance: 0.73980

Current Support: 0.73600

High Target: 0.74150

Low Target: 0.73370

NZD/USD chart

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.