The NZD/USD is trading near the 0.62700 ratio as of this writing with thin volumes continuing to affect conditions in the currency pair. Until full market volumes return early next week the results of the NZD/USD should be looked at suspiciously by day traders. Technical charts may help speculators seek reversals in the short term, but the lack of large institutional orders makes the NZD/USD vulnerable for all participants currently.
The U.S will release jobs numbers tomorrow; typically a large reaction would be expected. While the NZD/USD may produce volatility tomorrow, after the publication of the Non-Farm Employment Change and Average Hourly Earnings from the U.S, Monday’s trading in the currency pair is likely to become very dynamic. Traders tempted to hold onto the NZD/USD over the weekend should be very careful.
NZD/USD Timeframes Matter for Day Traders
Yes, the NZD/USD has traded lower in the past week, but this follows a high of nearly 0.63730 which was seen last Thursday. This higher value touched ratios not seen since the middle of July 2023. While the NZD/USD traded to a low of nearly 0.62200 yesterday, the currency pair still remains within the loftier realms of its one, three and six month technical perspectives. Timeframes for day traders are important and they have to remember that light holiday trading is still affecting short-term results.
Traders should remain cautious the remainder of this week in the NZD/USD. Nervous results which have sparked some selling may prove to be short lived and bullish sentiment is likely to begin showing its ability in the coming days. Until full market volumes return next week Forex traders should remain cautious regarding their outlooks because behavioral sentiment cannot be trusted easily for the moment.
NZD/USD Support Barometers for Consideration
An indication that broad market sentiment remains tranquil may be coming from the gold and U.S Treasury markets. Gold remains within the higher elements of its mid-term price range and U.S bond yields continue to show signs of erosion, this may be a signal that additional weakness in the USD is expected to develop. However, until financial institutions return to the marketplace next week, betting on short-term movements in the NZD/USD remains dangerous.
- Support near the 0.62700 to 0.62650 ratios should be watched by NZD/USD traders, if these levels prove durable they could spark some quick hitting buying wagers.
- Tomorrow’s U.S jobs numbers statistics may cause volatility, particularly because Forex markets are thin. NZD/USD traders should use solid risk management as they brace for the data.
NZD/USD Short Term Outlook:
Current Resistance: 0.62775
Current Support: 0.62650
High Target: 0.62950
Low Target: 0.62510