The NZD/USD is trading within sight of the 0.62670 level, remaining under the key 0.62700 ratio as of this writing. Â On the 22nd of July the NZD/USD currency pair did jump above the 0.63000 briefly, but then started to reverse lower before going into last weekend. As this week began the NZD/USD actually fell to a depth of approximately 0.62148 on Monday. However, yesterdayâs anticipated U.S Federal Reserve interest rate delivered plenty of volatility as suspected.
Sharp low and then a Significant Burst Higher Produced Late Yesterday for the NZD/USD
In swift and speculative trading conditions yesterday the NZD/USD traded below the 0.62000 juncture momentarily, but then exploded higher and touched the 0.62700 mark in a blaze of volatile results. Â Eventually the NZD/USD traded at a high of nearly 0.62775 before moving lower. This occurred as the U.S Federal Reserve made their interest rate hike of 0.75% to 2.50% official. The NZD/USD sudden test of its higher short term range developed as financial institutions started to digest new pronouncements from the U.S central bank regarding outlook.
- Technically intriguing is the notion yesterdayâs burst higher did not topple last Fridayâs high for the NZD/USD.
- The remainder of this week for the NZD/USD will likely prove fast and produce choppy conditions as outlook is acted upon.
Technically the NZD/USD offers a keen opportunity for wagers. Traders who have suffered from the nagging feeling the New Zealand dollar has been vastly undervalued in recent months against the USD may feel it is time to start wagering on additional upside price action. The long term bearish trend of the NZD/USD has exhibited immense strength. Could now be the time when the NZD/USD starts to reverse legitimately upwards?
Resistance Levels need to be Monitored and Show they are Durable in the NZD/USD
Speculative bullish positions may prove alluring and a worthwhile wager in the near term. Â However the results of the NZD/USD the past nine months are a stern reminder the bearish trend of the currency pair has produced downward action consistently. The NZD/USD was trading near 0.72100 in the last week of October 2021. And then the U.S Federal Reserve stepped in with its series of interest rate hikes.
If the NZD/USD steps above the 0.62700 level soon and begins to sustain upwards momentum, bullish speculators may become ambitious and believe the 0.62725 to 0.62750 will become an easy get. However, few things ever prove easy when participating in Forex for retail traders, risk management will be essential and stop loss order and use of conservative leverage is urged. Traders buying the NZD/USD and looking for upside price action cannot be blamed, but realistic targets are essential to cash out profits when they are made. Using lower support levels which look durable and igniting buying positions could prove the best tactic for speculative buying wagers.
NZD/USD Short-Term Outlook
Current Resistance: 0.62700
Current Support: 0.62604
High Target: 0.62850
Low Target: 0.62540
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