As of this writing, the NZD/USD is trading within sight of the 0.70825 vicinity as the Forex pair has proven it has the capability to brush aside short-term resistance levels and correlate to global Forex. Important resistance levels are now within sight around the 0.70860 mark which were last seen in the first week of August. After hitting a low of nearly 0.68000 on the 20th of August, the NZD/USD has produced a solid short-term bullish trend.
Current price vicinity is important for the NZD/USD and, if bullish trading continues and seriously begins to brush aside resistance, the 0.71000 mark could be tested. The last time this price ratio was seen in a sustained manner was in the middle of June of this year. This coincides with volatility which ensued because of U.S central bank shadows regarding its inflation and interest rate rhetoric during that time. The recent reversal higher off lows seen less than two weeks ago, does fit into the weaker USD narrative which has been exhibited within many major Forex pairs.
Speculators should certainly keep their eyes on current values with the NZD/USD and if the 0.70700 can be sustained as support short term, it may prove to be a solid indicator additional buying power will be seen sooner rather than later. Current resistance levels are nearby and price velocity has quickened recently as buying appears to have generated enthusiasm for the NZD/USD.
Speculators who have a bullish outlook for the NZD/USD cannot be faulted. After suffering through a rather solid bearish amount of price action since the end of May, the NZD/USD appears ready to actually sustain some upwards momentum. If current resistance near 0.70850 to 0.70900 is proven vulnerable, traders may believe higher values will be attained.
However, traders are cautioned not to be overly ambitious and cash out profitable trades before they vanish into this air. The movement in the NZD/USD has certainly taken on a positive tone, but natural reversals lower should always be expected because they are a healthy part of Forex. Traders who want to sell based on the notion that resistance levels can be taken advantage of by shorting the NZD/USD should make sure they are nimble and able to practice quick-hitting trades.
NZD/USD Short-Term Outlook
Current Resistance: 0.70850
Current Support: 0.70600
High Target: 0.71050
Low Target: 0.70150
