- The NZD/USD has been able to fight slightly upwards from its lows which were seen on the 13th of January, when the currency pair was traversing near depths of 0.55425.
- The last time lows showcasing those values were seen was in October of 2022.
- Before that distant date, the previous time the NZD/USD had reached these dramatic prices was in March of 2020, yes, during the height of coronavirus.
However, the upwards track presented the past week and a half is a bit of a victory for speculators who believe the NZD/USD has been oversold over the past few months. The current value of the NZD/USD is near the 0.56560 mark depending on the bid and ask. Technically the currency pair is around value it has traversed since the 19th of December.
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Speculative Opportunity and Realistic Targets
The recent move up from lows produced, has failed to bring a sustained upwards climb however. Speculators who are wagering on the NZD/USD to suddenly spring forth and break the 0.57000 level and higher should remain patient. And by patient that may mean being cautious to the point of not being overly aggressive about bullish ambitions quite yet unless you have longer timeframes and deep pockets.
Global Forex sentiment remains on shaky ground as financial institutions are still waiting for more optimistic clarity with their outlooks. Until then the NZD/USD like all other major currencies may remain locked in a rather choppy mode in which technical resistance and support levels are traded.
President Trump and NZD/USD Near-Term
President Donald Trump has stated that he intends on carrying forth with his tough tariff negotiations stance and this drumbeat may grow louder over the next week. While New Zealand will likely not be affected by Trump’s policies directly, it is likely USD centric strength will continue to be seen on occasion near-term in global Forex meaning the NZD/USD could still be punished with selling that challenges support levels.
- The NZD/USD has been able to come off of lows, but this may develop into an opportunity to look for downside targets with quick hitting take profit orders in the near-term.
- Traders should not look for sustained price movement higher yet, perhaps the best opportunity for bullish wagers is to see if the 0.56500 to 0.56400 levels prove durable as support in the short-term.
- Over trading in cautious conditions can prove dangerous for traders, having targets that are realistic will prove useful.
- Choppy trading scenarios can test traders emotionally and the next few days might see more sideways action from the NZD/USD technically.
NZD/USD Short Term Outlook:
Current Resistance: 0.56600
Current Support: 0.56510
High Target: 0.566970
Low Target: 0.56440
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