The NZD/USD is near the 0.68000 level in early trading this morning, after achieving a high of nearly 0.68300 in yesterday’s session. The NZD/USD remains within the lower tier of its three-month trading range and as recently as the 20th of December, the Forex pair tested the 0.67000 juncture. However, as holiday trading pervades the Forex market with light transactional volumes, speculators may look at the NZD/USD as a place to wager on speculative positions while seeking an opportunity to take advantage of potential choppy conditions.
The 0.68000 level could prove to be an inflection point for technical traders in the near term. Momentum speculators who seek to place orders based on strong direction could be tempted into believing a move above the 0.68050 level may indicate a chance to look for additional upside action. Because trading volumes are low, the NZD/USD can see abrupt spikes occur and traders should anticipate them.
Speculators should not be overly ambitious in the near term and maintain realistic price targets. Yesterday’s higher move to the 0.68300 level brushed up against resistance which was created shortly before Christmas. The 0.68400 remains an important barrier higher. In early December, the NZD/USD did accomplish a high of about 0.68620, but this proved to be short lived.
Traders who believe the NZD/USD still has value to explore lower may want to see sustained trading under the 0.68000 level today. If the 0.67940 mark is challenged and penetrated lower, the NZD/USD could quickly begin to move towards the 0.67900 to 0.67850 levels. Traders are encouraged to use strict entry price levels with all of their trading, because a sudden dose of unanticipated volatile movement could produce order fills which lead to headaches.
Holiday trading will continue to dominate the NZD/USD until the New Year celebrations are in the rearview mirror. Speculators who believe the NZD/USD remains in the lower realms of its long-term price range and has been oversold may want to consider bullish positions based on the notion higher values will be exhibited. Short-term traders should use take profit orders to cash out of quick hitting wagers, particularly if they find success during this time of year because lower trading volumes can lead to sudden reversals unexpectedly.
NZD/USD Short-Term Outlook
Current Resistance: 0.68150
Current Support: 0.67800
High Target: 0.68650
Low Target: 0.67580
