The NZD/USD is near the 0.61700 ratio as of this writing. The high produced early on Monday near the 0.62225 mark touched values last seen on the 31st of July. However, since marching upwards to this apex, the NZD/USD has incrementally sold off and the currency pair is now languishing within the middle of its near-term trend.
Perception is always important in trading. Technical traders who only look at one week charts may feel as if the NZD/USD is producing very choppy values, and they would be correct. However, speculators looking at one month charts will clearly see the NZD/USD is within sight of its highs and may feel support below could prove interesting depending on timeframes regarding trading decisions.
NZD/USD Support near the 0.61610 Ratio of Interest
Traders need to remember they do not have to participate in the markets every day. If the NZD/USD is creating conflicting insights regarding potential direction it would be wise to simply sit on the sideline and monitor price movements. The NZD/USD has provided bullish speculators with a solid move higher since the last week of October, but reversals lower have certainly been part of the landscape.
Traders who want to still wager on upside momentum in the NZD/USD may want to be conservative and look for support levels to ignite buying positions. The 0.61610 level may be appealing to cautious traders. Risk appetite has faced some headwinds in the global markets the past couple of days, but this may also be happening because larger players are simply cashing in profits. Reversals lower in the NZD/USD which have recently been seen are a natural part of the trading landscape. Traders cannot expect one way trends all the time.
NZD/USD Risk Appetite and Bullish Speculators
Traders who want to continue to look for upside in the NZD/USD cannot be blamed. The short-term has certainly proven difficult, but outlook is important. If the currency pair can produce stubborn support in the near-term this could prove a ground for additional momentum upwards. The U.S will release jobs numbers this Friday and this will make some traders cautious. Current conditions in the global markets could see sparks of volatility in the coming days as large financial institutions position based on their outlooks which may remain optimistic regarding risk appetite and a weaker USD.
- Traders should not be overly aggressive, quick hitting long positions which cash out profits before they vanish is a good conservative tactic in the NZD/USD.
- If the NZD/USD can stay above the 0.61700 in the short-term this may produce additional positive momentum in the currency pair and traders may aim for the 0.61800 and 0.61900 ratios.
NZD/USD Short Term Outlook:
Current Resistance: 0.61800
Current Support: 0.61610
High Target: 0.61960
Low Target: 0.61490
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