Today’s early bullish momentum within the NZD/USD has put the Forex pair within sight of values not seen since early March. Short-term traders who have been pursuing the bullish trend of the NZD/USD likely have battle scars to show at the dinner table and describe to their friends.
However, if they have been fortunate to survive the lower depths of the Forex pair’s traverse downwards which essentially tested the 0.71000 juncture from the 5th until the 8th of March, the speculators may have reasons to believe pursuing an upwards track remains enticing.
After coming within sight of the 0.71500 level yesterday, the NZD/USD suddenly began to burst higher. In early trading today, the Forex pair has been able to test the 0.72600 marks. The junctures of 0.72500 to 0.72775 now look like targets for traders who remain bullish on the New Zealand dollar. As of this writing, the NZD/USD remains somewhat fast and traders are advised to use limit orders to protect against troubling price fills.
The NZD/USD is correlating politely with many other major Forex pairs against the USD. Global risk sentiment has steadied and appears to be perhaps even optimistic, and if this trend remains intact, the USD may continue to find that speculative wagers are made against it. As record highs are being tested on major global indices the perception that financial institutions will continue to pursue risk remains a strong notion.
Traders who are skeptical of the NZD/USD based on the choppy conditions which have emerged since the end of February have legitimate reasons to remain cautious. However, technically the NZD/USD has moved in a manner which reflects the gyrations of many Forex pairs and the high of 0.74600 made on the 25th of February remains an attractive piece of knowledge to consider.
Traders certainly should not be aiming for the highs of February to be achieved quickly, but these loftier values may produce a technical trend which tries to re-establish the long-term bullish trend of the NZD/USD which continues to show signs of life. From a risk/reward standpoint, technically it appears that there is greater opportunity for more robust moves upwards from the NZD/USD compared to the chance strong downside action will suddenly reignite. Buying the NZD/USD on slight pullbacks lower may prove to be a solid speculative wager short term.
NZD/USD Short-Term Outlook:
Current Resistance: 0.72500
Current Support: 0.72070
High Target: 0.72900
Low Target: 0.71940
