The NZD/USD is near the 0.62770 ratio as of this writing, the last time the currency pair traversed this price range in a sustained manner was late July of this year. The move higher in the NZD/USD since the 25th of October has been solid. Last week’s jump higher upon the Federal Reserve’s FOMC Statement was a big impetus, the recent ability to climb above the 0.62000 mark and sustain value has added to the luster.
Speculators who have had a bullish perspective and have continued to wager on upside momentum as the NZD/USD has surpassed the 0.62300 and 0.62400 marks have been rewarded. Yesterday’s toppling of the 0.62500 seems to have ignited additional buying. Trading in the NZD/USD later today and into tomorrow should be watched carefully, this as holiday trading volumes likely begin to affect near-term outlooks.
NZD/USD Upside Attractive but Caution is Advised
Traders may be tempted to continue pursuit of higher targets in the NZD/USD and they cannot be blamed. However risk management is essential, because reversals will certainly be a part of the trading landscape and at some point financial institutions will believe equilibrium has been found. Having endured a strong mid-term move lower to ‘painful’ depths, perhaps the turnaround in the NZD/USD has finally started to have gain believers.
Since hitting the 0.57800 mark and lower in the last week of October this year which brought reminders of lows seen in October 2022, the recovery upwards in the NZD/USD has been strong. As the holiday season approaches short-term traders need to understand thin volumes in Forex will affect the NZD/USD. However, if the 0.628000 ratio in the near-term is challenged and penetrated, speculators may believe the 0.63000 level starting to become a legitimate target.
Risk Appetite and Government Policies Helping NZD/USD
The New Zealand government now in power is viewed as business friendly and recent economic data from the nation has begun to show signs of improvement. Better behavioral sentiment in New Zealand and globally may be adding to the notion NZD/USD traders may benefit from durable support levels. In the coming days as volumes in the currency pair thin, speculators will need to be careful and use quick hitting wagers if they cannot afford to hold positions overnight, nor take the risk that a sudden reversal may flourish.
- If the 0.62825 level is proven vulnerable and values remain above this mark, the NZD/USD may provide traders still participating in Forex with the notion upwards momentum may remain abundant.
- However, traders also need to be on the lookout for the potential of sudden moves lower if an unbalanced NZD/USD selling position enters the markets in the near-term.
NZD/USD Short Term Outlook:
Current Resistance: 0.62810
Current Support: 0.62690
High Target: 0.63040
Low Target: 0.62525
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