After suffering a steep decline in late March the NZD/USD has continued to consistently march higher and yesterday’s trading brought it within sight of crucial mid-term resistance levels. A high of nearly 0.71600 was achieved on Wednesday and the last time the NZD/USD was able to traverse that height and above legitimately was towards the end of the third week in March.
After stumbling lower on the 22nd and 23rd of March and hitting a mark of nearly 0.69430 on the 25th of March, the NZD/USD has been able to fight its way higher. Technical traders will point out the NZD/USD had to battle through difficult choppiness the end of March and early April. On the 1st of April the NZD/USD again fell to its late March lows. However, since the first of this month the forex pair has been able to incrementally increase its support levels.
When a low of 0.70030 was tested and held on the 13th of April, the NZD/USD saw a strong move higher. The past two days of trading have essentially filled in the void technically which existed because of the steep drop in value on the 22nd of March as the NZD/USD has climbed higher and begun to challenge the 0.71400 juncture. As of this writing the NZD/USD is showing an ability to maintain its price above this price level and if its value sustains and creates a legitimate technical support ratio within this ratio of 0.71400 it may be a signal for further bullish momentum.
The NZD/USD demonstrated a strong dose of bearish sentiment in March when global forex became unnerved by the jitters in the US bonds market. However as investment houses have displayed more stability with US treasuries forex has begun to gravitate towards a return to sentiment the past couple of weeks which have seen the USD get weaker in many cases.
Technically the NZD/USD appears to have the ability to recapture more bullish territory and potentially begin to test a higher range. Speculators should remain pragmatic and not over leverage their wagers, but buying the NZD/USD on small pullbacks may prove to be a worthwhile speculative position short term. If the juncture of 0.71400 proves stable, traders will likely begin to target the 0.71600 level as a goal.
NZD/USD Short Term Outlook:
Current Resistance: 0.71600
Current Support: 0.71320
High Target: 0.71870
Low Target: 0.71200
