NZD/USD Analysis Today - 03/07: Speculative Angst (Chart)
(MENAFN- Daily Forex) The NZD/USD has continued to test lower technical depths and speculators have decisions to make based on timeframe perspectives.
The NZD/USD exchange rate is trading near the 0.60722 ratio as of this writing, this mark is actually higher price action than seen yesterday when the currency pair touched the 0.60465 vicinity. The NZD/USD is near its monthly low, but still traversing the higher elements of three month technical charts. Perspectives for individual day traders will have a lot to do with interpretations of behavioral sentiment and existing economic data, but trading volumes will have to be considered too.
Speculators need to be aware that Forex trading will begin to drop dramatically later today, as U.S financial institutions allow their workers to disappear for the long holiday weekend about to ensue. Tomorrow is the Independence Day celebration in the U.S, meaning most assets including the NZD/USD will see very low transactions the remainder of the week. Day traders looking to gauge decisions based on technical charts need to understand that what is being demonstrated on their brokerage screens may not reflect overall sentiment.U.S Economic Data and Uncertainty of Outlook
While USD centric positions in Forex have shown strength recently, U.S data continues to suggest economic road signs are not particularly healthy. The U.S will release jobs data this coming Friday, but because of the long holiday weekend the outcomes of the Non-Farm Employment Change and Average Hourly Earnings statistics may fall on deaf ears. While there will be a reaction on Friday, the NZD/USD may produce a lot of volatility early next week when full volumes return to Forex.
The ability of the NZD/USD to fall below the 0.61000 level is important, having occurred on Monday the currency pair has not been able to muster a significant reversal higher. Trading the remainder of this week may not be an accurate reflection of total behavioral sentiment. If the NZD/USD remains under the 0.61000 level and cannot challenge the 0.60900 higher short-term resistance level steadily, this may indicate bearish sentiment is real, but it may also arouse the suspicions of traders who begin to look for support levels which can be used as a place to ignite short-term buying positions.
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NZD/USD Short-Term Caution and the View from the Sidelines
Day traders need to consider the potential of sitting on the sidelines the remainder of this week because of the lack of volume which will develop in the NZD/USD. Support levels around the 0.60600 appear to be important technically via a three month chart, but because of the lack of volume in the NZD/USD near-term results may be suspicious and dangerous to challenge.
NZD/USD Short Term Outlook:
Current Resistance: 0.60765
Current Support: 0.60690
High Target: 0.60950
Low Target: 0.60575
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