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The NZD/USD remains in a tight range and near intriguing short term support levels as the U.S Federal Reserve is set to announce their monetary policy.
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Speculators that are not positioned in the NZD/USD for the moment might want to continue to simply monitoring the currency pair as the day progresses. The U.S. Federal Reserve will announce its Federal Funds Rate decision later today, along with its FOMC Statement which will give financial institutions a glimpse of the U.S. central bank’s outlook for the next handful of months. The NZD/USD is in a rather cautious range.
The NZD/USD is trading near the 0.62300 ratio as of this writing. The current value of the NZD/USD is hovering within a range that is traversing a rather tight realm as trading becomes cautious leading up to the Fed’s announcements later today. However, the NZD/USD is certainly trading within the lower end of its one and two-week timeframes taking into consideration that the currency pair was near the 0.64125 ratio on the 14th of July.
Speculative bulls of the NZD/USD may believe the currency pair is oversold as it stands within sight of intriguing support near the 0.62100 to 0.619900 levels, but traders should understand the NZD/USD has shown the ability to trade at lower values. On Monday the Forex pair challenged the 0.61580 mark briefly before developing a reversal higher. The incremental gains made by the NZD/USD which are now within sight also of resistance near the 0.62350 are intriguing. The range is tight and traders need to understand financial institutions are signaling their uncertainty regarding the U.S Federal Reserve’s rhetoric which will only be known later today.
While traders may feel enticed to make wagers before the Fed’s announcement today and bet on direction, they will need full risk management to be working. Perspective regarding technical charts will be important, but fundamentals will create a strong push later today and depending on the FOMC Statement’s wording the NZD/USD will react with strong price velocity.
- The Federal Reserve is expected to hike interest rates in the U.S by another 0.25% today, that has likely been digested into the NZD/USD, but the unknown and anticipated important news is the outlook that the U.S Fed delivers.
- If the Fed expresses that inflation has shown signs of decreasing and that a wait and see approach is needed regarding U.S data, this could help spur on buying of the NZD/USD.
- Betting on a long position of the NZD/USD which will test higher ground is a pure wager until the Fed’s FOMC Statement is made official. Traders need to be careful today.
Current Resistance: 0.62350
Current Support: 0.62150
High Target: 0.63450
Low Target: 0.61590
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