The NZD/USD has continued to demonstrate the ability to incrementally rise and is near resistance levels last seen in the middle of February.
The NZD/USD has found additional buying momentum as today has begun, which has highlighted the rather optimistic upwards trend the currency pair has been able to achieve since the 8th of March. Certainly, reversals lower have also been seen in the NZD/USD, and day traders need to take into consideration the cyclical nature of Forex markets, but the move higher has shown evidence of a bullish trajectory re-emerging.
The NZD/USD was trading at 0.60915 on the 8th of March, as shadows loomed regarding U.S Federal Reserve monetary policy, and a financial crisis regarding the global corporate banking sector began to make noise. The past week has seen more tranquil trading conditions take hold and the NZD/USD has gained a stronger footing because of better behavioral sentiment. Calm market conditions and the notion the U.S. central bank may have to start curtailing its hawkish interest rate policy have created a weaker USD in Forex and the NZD/USD has correlated to global trading.
This coming Friday will see the publication of the U.S. Non-Farm Employment Change statistics. The jobs data which has taken a backseat to inflation data the past year in Forex is now under the spotlight again. This is because the U.S. employment numbers are being watched to see if signs of the U.S. economy is slowing down are becoming evident. Combined with the Average Hourly Earnings outcome this coming Friday, the two reports will have an effect on the NZD/USD.
- The Good Friday and Easter holidays will create a long holiday weekend for many global financial institutions, meaning trading volumes will decrease and create potential volatility.
- The combination of the important U.S. data later this week could cause financial houses to be proactive within Forex and the NZD/USD may experience a volatile impact too.
If the NZD/USD is able to maintain its value above the 0.63000 level today and tomorrow that can be interpreted as a bullish signal. While the results of the U.S. data later this week will certainly cause a reaction in Forex and the NZD/USD, higher values today and tomorrow would indicate that financial institutions may believe additional buying momentum will be generated if the U.S. data is weaker than anticipated.
The upwards trend in the NZD/USD is now testing values last seen late in the second week of February. Traders who are targeting higher values may prove to be correct, but risk management should be used, and taking profit orders should remain realistic.
Current Resistance: 0.63109
Current Support: 0.62900
High Target: 0.63585
Low Target: 0.62350
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