The NZD/USD has recovered it bullish stance and is simmering within the higher elements of its near-term value as financial institutions likely consider higher potential targets amidst USD weakness.
The NZD/USD is near the 0.60710 ratio as of this writing. The value of the currency pair is touching its weekly highs as it fluctuates in a Forex market that continues to see USD weakness simmer in financial institutions. Day traders who want to consider pursuing more upside price action may have a legitimate perspective, but caution is advised as important resistance levels remain a factor.
The NZD/USD did trade near the 0.60800 vicinity in the middle of June, so buyers of the currency pair who seek some volatility are likely hoping this ratio works like a magnet. The NZD/USD has seen a rather consistent upwards trend since the middle of May. This week’s early lows which did see price velocity were clearly caused by risk adverse trading due to concerns in the Middle East.
Risk Appetite and a Weaker USD Outlook
Mid-term outlooks in Forex among global financial institutions seem to be favoring the notion that the USD will continue to erode in value. The U.S Fed is starting to find itself in a difficult spot and some traders may believe that U.S interest rates will have to be cut sooner rather than later. The ability of the NZD/USD to move higher the last few months correlates well to the broad Forex market.
The 0.60700 mark today and tomorrow could prove to be an interesting support barometer. If the NZD/USD maintains value above the 0.60700 ratio this would show there is definite interest in the currency pair moving higher. The U.S GDP numbers will be released today and another lackluster result could spur on buying of the NZD/USD, if financial institutions believe this is additional impetus for a Federal Funds rate cut the end of July.
0.608000 as a Speculative Target Near-Term
Day traders looking for upwards momentum in the NZD/USD cannot be blamed. The currency pair does have the potential to create fast price action and the 0.60800 realm is not so far away. Perhaps traders who are conservative may want to be buyers of the NZD/USD around the 0.60680 or lower realm, if they believe support levels will prove durable.
- Looking for smaller profit goals around the 0.60725 or 0.60750 targets may be more pragmatic for smaller traders who have limited funds and need to take advantage of moves that are less speculative.
- Holding onto a position when price targets have been met often proves to be a mistake for smaller traders, because intraday reversals in Forex are part of the landscape.
- Looking for NZD/USD moves higher needs to come along with solid risk management.
NZD/USD Short Term Outlook:
Current Resistance: 0.60725
Current Support: 0.60675
High Target: 0.60800
Low Target: 0.060610
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