NZD/USD: Short-Term Range Shakes But Stays Durable

The NZD/USD has managed to maintain the upper part of its mid-term range, and after a reversal lower yesterday has seen some buying.

After falling to a low of nearly 0.70950 yesterday, the NZD/USD has rebounded and turned in a rather stable trading performance. Nervous trading conditions yesterday may have accounted for some of the selling in the NZD/USD because of the ‘waiting game’ which was then followed by the reaction to the U.S. Federal Reserve’s monetary policy statement.

Intriguingly, the NZD/USD continues to traverse within a relatively strong mid-term price range and it is still consistently showing an inclination to battle resistance levels. The 0.72000 mark continues prove rather durable up above. The lack of a strong selloff and demonstration of rather stable trading conditions within the short term may lead some speculators to believe the NZD/USD is consolidating and preparing to make another dramatic move.

If support levels near the 0.71300 to 0.71150 levels prove adequate this may be an indication technical buying will persist and begin to challenge higher price levels near term. Since trading around the 0.68750 vicinity on the 6th of October, the NZD/USD has shown a rather incremental amount of bullish momentum. Traders may be skeptical about the ability of the Forex pair to break through and sustain prices above 0.72000 which has proven rather strong since June of this year, but buying near current support levels and attempting a wager on upside momentum and towards resistance levels as take profit targets may be a rational speculative decision.

The NZD/USD has suffered through a series of rather strong bearish selling spurts the past few months. Traders who are unconvinced about the ability of the NZD/USD to climb much higher could be sellers by waiting for the Forex pair to move higher and within sight of short-term resistance levels, and then open short positions hoping to catch a wave down.

Recent price action in the NZD/USD has shown technical characteristics of upside potential. Short-term traders may be positioned well to take advantage of the choppy conditions which has prevailed the past handful of days, but if resistance levels are penetrated above there is reason to suspect a strong move near term for the NZD/USD could develop to the upside. Buying the NZD/USD on slight moves lower and looking for upside value with quick hitting trades may prove a solid wager short term.

NZD/USD Short-Term Outlook

Current Resistance: 0.71650

Current Support: 0.71240

High Target: 0.71960

Low Target: 0.70860

NZD/USD

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.