The NZD/USD has shown additional firepower within its bullish trend today and is now within sight of important mid-term resistance levels seen in early January.
The NZD/USD continues to challenge higher levels as its bullish trend demonstrates its long-term ability to climb. The USD/NZD briefly came within the 0.72700 vicinity today before suffering a slight reversal lower, but speculators may continue to be fascinated with upside potential as the Forex pair seemingly fights for higher values.
The climb higher earlier today was a one-month high and puts the NZD/USD within shouting distance of early January marks when the Forex pair tested the 0.73000 level. The NZD/USD is still below long-term highs when the Forex pair traded above the 0.73000 juncture in 2018 in a sustained fashion, but short-term speculators have reason to suspect that the momentum being displayed upward may continue.
Resistance near the 0.72700 to 0.72750 junctures should be watched carefully by traders; if this level is proven vulnerable, it could set off alarm bells and create higher targets. The long-term trend of the NZD/USD may look like an opportunity to sell for some speculators, but they should acknowledge that they would be going against an established long-term trend. Traders need to carefully consider where the greatest amount of risk reward can be quantified. While the upside may actually appear limited regarding its potential, if the 0.72750 resistance level crumbles and trading is sustained above this mark, it could ignite stronger bullish behavior.
Support levels have proven rather strong within the NZD/USD, and if traders do want to sell the Forex pair, they should understand that their trades need to be quick-hitting and have activated take-profits to limit the risk of suffering sudden reversals higher. The 0.72550 to 0.72480 junctures may prove to be rather strong as support short term.
Buying the NZD/USD continues to look like an attractive speculative position. Traders should consider going long the NZD/USD on slight pullbacks. The ability to use rather tight stop losses is also a possibility regarding the Forex pair’s ability to maintain a rather solid technical footing. Traders should not be overly greedy with the NZD/USD. The 0.72700 does look like an attractive target and, it if is punctured higher, traders should be ready to cash in their winning positions for short-term gains.
NZD/USD Short-Term Outlook:
Current Resistance: 0.72700
Current Support: 0.72480
High Target: 0.72930
Low Target: 0.72360