The one-month trend for the NZD/USD is showing an incremental move as the bullish momentum fights higher. The NZD/USD is above the 0.70340 mark as of this writing and, if values can be sustained, speculators may believe that technical resistance near the 0.70380 mark may prove to be a calling card. If this resistance level is proven vulnerable, traders cannot be faulted for believing higher realms may see the light of day sooner rather than later.
On the 11th of August, the NZD/USD did test the 0.70600 level but was pushed backwards, but this height was still below the highs reached on the 4th and 5th of August when the 0.70800 juncture was approached. Traders must remember that the NZD/USD can move with volatile thrusts due to it highly valued fractional trading when a lot of leverage is being used.
After touching a low of nearly 0.68775 on the 21st of July, the NZD/USD has fought off of lows in an incremental manner. The USD has begun to show some weakness in the broad Forex markets and the New Zealand dollar is correlating well to other major currencies.
Yes, the NZD/USD does remain within the weaker boundaries of its mid-term chart when three-month and six-month windows are glanced. However, if a one-year technical chart is inspected, traders can come away with a different perspective, including short-term speculators.
The current values of the NZD/USD remains under important resistance levels. Bullish traders who are waiting for further evidence for an upwards trend may use the 0.70400 and 0.70500 junctures as indicators. However, aggressive traders who suspect the NZD/USD still resides in oversold territory via its mid-term technical charts may feel that now is an opportunity to catch a bullish trend which may prove to have teeth.
Traders who want to buy the NZD/USD near its current market price around 0.70350 ration may be making the logical choice. Certainly risk management needs to be used correctly and stop loss tactics are encouraged. If a trader can buy the NZD/USD and use a stop loss that allows them to pursue higher ground and maintain their position through short-term rigors caused by natural reversals, the Forex pair may prove to have a capability to climb near term and deliver a worthwhile result.
NZD/USD Short-Term Outlook:
Current Resistance: 0.70380
Current Support: 0.70200
High Target: 0.70500
Low Target: 0.70100
