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The inability of the NZD/USD to sustain a strong reversal higher is likely causing anxious perceptions for speculators who cling to the idea the currency pair has been oversold.
The NZD/USD is trading near the 0.58980 level as of this writing as financial institutions have certainly braced their positions for today’s CPI data, which will come from the U.S. later and be followed by another important inflation report on Thursday. The NZD/USD hit a high of nearly 0.59350 on the 11th of September but has reversed lower since producing the value on Monday. An early low this morning saw the NZD/USD hit a depth around 0.58860 before fighting upwards.
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Trading can be described as largely sideways the past few days as cautious outlooks continue to seep into the broad global financial markets. Speculators have a variety of reasons to remain cautious the next couple of hours before the U.S. release of critical Consumer Price Index statistics. The inflation data could set off an uncomfortable firestorm in Forex and the NZD/USD, particularly if the results are higher than anticipated. The 0.59000 is now a battleground for technical traders of the NZD/USD short-term.
The inability of the NZD/USD to sustain a strong reversal higher is likely causing anxious perceptions for speculators who cling to the idea the currency pair has been oversold. The last time the NZD/USD traded above the 0.60000 level was on the 1st of September. While bullish traders may have dreamed of seeing this higher value this Monday when a ratio of 0.59350 was momentarily produced, stronger selling obviously remains seen and has proven a rather frequent source for lower price action after brief reversals higher have been achieved.
Today and tomorrow’s U.S. inflation data is certain to feed into an already nervous global financial marketplace. The NZD/USD will react to the U.S. data, and technical traders need to pay attention to the fundamental factors that will power sentiment over the coming day and a half. If U.S. data is stronger than expected the NZD/USD could lose more ground. And if U.S. inflation data comes in weaker than expected the NZD/USD could respond with a solid move higher.
- While sideways price action has been exhibited within the NZD/USD as financial institutions grown cautious before the U.S data, traders need to understand the value range of the currency pair will expand swiftly as the Forex market anticipates and reacts to the inflation results.
- For the time being the NZD/USD price range of 0.58900 to 0.59100 may produce choppy conditions, but these prices are likely to see another range emerge later today and tomorrow.
- Risk management is essential today in the NZD/USD.
Current Resistance: 0.59080
Current Support: 0.58940
High Target: 0.59510
Low Target: 0.58575
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