The NZD/USD is trading near short-term highs as it hovers within a rather intriguing mid-term technical framework that offers a variety of perspectives.
Having touched a low of nearly 0.68800 on the 20th of July, the NZD/USD is now traversing within sight of the .070200 level. The lows reached by the New Zealand dollar in late July tested values last seen in the middle of November 2020. The NZD/USD in recent trading has correlated rather politely to other broad Forex pairs by rebounding and making gains the past week.
Technical traders will likely agree that the NZD/USD is still trading near important lower prices within its mid-term price range. The answer they might not agree upon is the coming direction of the Forex pair. From a one-month perspective, resistance looks alluring and, if mid-July values of 0.70210 to 0.70275 begin to be tested today, it could set off alarm bells among speculators who believe more buying momentum will be demonstrated. This outlook cannot be faulted and if resistance does prove vulnerable, early July values for the NZD/USD near the 0.71000 juncture could prove to be a target.
Current support does look adequate near the 0.69900 level. Having tested long-term lows almost two weeks ago, the NZD/USD may have put in low water marks and speculators who have a positive outlook for the New Zealand dollar may decide that the current support level can serve as an interesting stop loss ratio if a conservative amount of leverage is being used. However, if this support level fails, it is conceivable that the 0.69600 mark could be a selling wager for bearish traders who are eyeing late last week’s lows.
The NZD/USD offer speculators a rather interesting glance into technical considerations. A three-month chart shows the NZD/USD is still clearly within a lower price range. A six-month window also shows the NZD/USD still within its lower ratios; however, this particular chart also seems to indicate that the current support levels may appear adequate and that they might generate bullish sentiment.
Buying the NZD/USD near the 0.70100 to 0.70050 marks may prove to be an attractive option for speculators who want to see some downside action before they seek a reversal higher. The NZD/USD does have the ability to move fast because of its magnified fractional value changes, particularly when speculating with leverage is factored into the mix. Short term, the NZD/USD appears ready to continue a bullish perspective and traders may be able to take advantage of this direction with cautious buying wagers.
NZD/USD Short-Term Outlook:
Current Resistance: 0.70210
Current Support: 0.69900
High Target: 0.70420
Low Target: 0.69535