The NZD/USD continues to demonstrate a strong mid-term bearish trend and long-term lows are now fully within sight for traders to contemplate.
The old saying that the trend is your friend is appropriate with the NZD/USD. The mid-term range of the Forex pair is consistently demonstrating an ability to brush aside support. Yes, the NZD/USD certainly produces enticing moments with higher reversals, but since the third week of May, the Forex pair has demonstrated a rather durable ride lower.
As of this writing, the NZD/USD is near the crucial 0.69000 level and it did trade below this juncture briefly earlier today. If this ratio proves vulnerable and prices are sustained beneath this barometer, it will certainly cause stubborn bullish speculators to second guess themselves. The last time the current values of the NZD/USD were seriously traded was in November of 2020. And if the current support levels do not hold, traders will need to contemplate price targets which were last seen in the first week of November 2020 near 0.68300
The NZD/USD appears to be oversold, but the current trend remains problematic to speculate against. Courageous traders who believe the NZD/USD has upside potential should use their risk-taking tactics with finely crafted stop loss orders and not overly ambitious take-profit targets. Today’s earlier low of nearly 0.68885 should serve as a reminder that volatility is ample within the NZD/USD. The 0.69000 is without a doubt important and needs to be monitored near term.
Traders who are tempted to be buyers within the current price are encouraged to use limit orders which go long the NZD/USD on slight moves downward. However, if the 0.68950 mark is seen and begins to show that it is having a hard time moving above the key 0.69000 level, this could be an indicator that further bearish price action will ensue and that support levels below could prove attractive, particularly if swift trading is displayed because of programmed trading softward.
The NZD/USD is certainly near intriguing support levels which have not been tested since November of 2020. Traders cannot be blamed for believing the bearish momentum in the Forex pair is bound to run out of power sooner rather than later, but wagering on this to happen needs to be done carefully and with a conservative amount of leverage.
NZD/USD Short-Term Outlook:
Current Resistance: 0.69400
Current Support: 0.68950
High Target: 0.70300
Low Target: 0.68600