Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Cautious Lower Trading as Risk Event Shadows Lurk

[ad_1]

Support for the NZD/USD needs to be monitored around the 0.64350 to 0.64250 ratios, but even if those levels were to prove vulnerable bullish traders may be willing to seek buying positions while believing upwards momentum is going to be demonstrated sooner rather than later.

The NZD/USD has moved to short-term lows as cautious trading has started to affect behavioral sentiment while financial houses brace for risk-coming events.

Advertisement

image

The NZD/USD is trading near the 0.64500 level as of this writing, having moved lower this morning after the currency pair touched a high of nearly 0.65075 yesterday. The downturn has come after the NZD/USD challenged its higher range in the past week of trading without being able to sustain its apex values. A high slightly above the 0.65300 ratios was seen on the 18th of January.

Storms and U.S Federal Reserve Outlook Potentially Affecting NZD/USD

Heavy rains have hit New Zealand recently, and while flooding in some areas is a troubling concern, this has not likely been the main impetus for a weaker New Zealand dollar.  Having achieved a rather comfortable bullish trend since the middle of October, the NZD/USD is maintaining its solid mid-term trend upwards.

The move lower the past day is not an indicator that a massive bearish reversal is about to develop. It is more likely a cautious approach regarding the upcoming U.S. Fed rhetoric tomorrow and U.S. jobless numbers on Friday.

Support for the NZD/USD needs to be monitored around the 0.64350 to 0.64250 ratios, but even if those levels were to prove vulnerable bullish traders may be willing to seek buying positions while believing upwards momentum is going to be demonstrated sooner rather than later. The more likely notion that the NZD/USD is experiencing a short-term selloff as financial houses become conservative before tomorrow’s U.S Federal Reserve Monetary Policy pronouncements is probable. The U.S. Fed is expected to raise interest rates by 0.25% again, but it is the U.S. central bank’s outlook regarding future rate hikes that will stir Forex including the NZD/USD.

NZD/USD Speculators may be ready to Wager on Upwards Momentum Developing

If the 0.64500 mark which is being fought over now is able to sustain its value, this could spark additional bullish behavior in the short-term. Having flirted with the 0.65000 ratio the past week of trading without being able to sustain momentum above, speculators may still be looking at this level as the target. However, simply aiming for closer resistance levels in the short-term as take profits marks may be the more realistic goal and cautious approach for wagers.

  • The bullish trend in the NZD/USD is likely, not dead, but the move lower the last day is a reminder financial houses remain concerned about the outlook for U.S Federal Reserve monetary policy.
  • Traders should brace for volatility before and after the U.S. central bank’s announcements on late Wednesday, choppy conditions will prevail in the NZD/USD with fast price velocity.

NZD/USD Short-Term Outlook:

Current Resistance: 0.64675

Current Support: 0.64330

High Target: 0.64980

Low Target: 0.64020

NZD/USD

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.