The NZD/USD is trading near the 0.60245 mark as of this writing; this after touching its high for the month yesterday when 0.60860 was attained. The ability of the NZD/USD to maintain it upward price range may continue to look attractive to bullish speculators via short, near and mid-term charts. Traders need to be aware that Forex volumes will start to decrease later today as U.S financial institutions start to leave for the Thanksgiving holiday which is celebrated tomorrow.
While the NZD/USD sustains prices over the 0.60000 level, bullish perspectives are likely to remain rather confident in the currency pair. However, with less trading volume developing in Forex later today, day traders should start to practice patience. The NZD/USD could start to become relatively quiet and sudden volatility could begin to be seen without defined technical reasons.
Behavioral Sentiment and the NZD/USD Reacts to Positive Influence
While the U.S will release economic data today it is questionable how much impact the Core Durable Goods Orders and Consumer Sentiment readings will have. Yesterday U.S stock indices saw a slight selloff occur, but this followed plenty of buying seen the past week, so the results could be the result of profit taking in the financial markets. The selloff early this morning in the NZD/USD also may be part of profit taking as some large players cash out winning positions.
The positive behavioral sentiment which has started to show signs of growing in the NZD/USD mirrors the broad Forex market as financial institutions have started to wager the USD will weaken mid-term. Also as a barometer gold is trading near important highs as it stays over the 2000.00 USD per ounce mark for the moment. However, traders need to understand that beginning later today and certainly into tomorrow, Forex volumes will become extremely light which could change the character of the market for short-term wagers.
Support in the NZD/USD Should be Monitored
- If the NZD/USD can remain above the 0.60200 support level and continue to challenge the 0.60300 mark in the short and near-term, this may ignite additional buying orders.
- Traders should use stop loss and take profit orders the remainder of the week to protect against the potential of volatile spikes developing in the NZD/USD.
- While bullish sentiment can clearly been seen via technical a one week and one month chart, traders should not get overly ambitious.
- If the NZD/USD sustains its current price range it will be a positive sign for the currency pair, but traders should remain cautious regarding their risk taking tactics as the U.S goes on holiday.
NZD/USD Short Term Outlook:
Current Resistance: 0.60325
Current Support: 0.60225
High Target: 0.60680
Low Target: 0.60080
Ready to trade our daily Forex forecast? Here’s some of the best New Zealand forex brokers to check out.