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MENAFN- Daily Forex) The NZD/USD has climbed above mid-term highs and is within sight of January values and some speculators may have their eyes on the higher values seen in December 2023, but more patience is needed.
- Day traders who have been fortunate enough to have been able to ride momentum upwards in the NZD/USD currency pair that began to spark furiously in early August have been rewarded.
- After the overreaction and fall of the NZD/USD in the immediate wake caused by the interest rate cut in New Zealand, financial institutions began to show a bullish outlook.
- The belief that the U.S Federal Reserve would also turn dovish has been confirmed.
The NZD/USD was trading near the 0.61500 level on Friday when Fed Chairman Jerome Powell said the Federal Reserve will begin cutting the Federal Funds Rate on Friday. The NZD/USD climbed quickly on the news and suddenly the currency pair was challenging the 0.62300 level. Trading the past couple of days has sustained positive momentum in the NZD/USD and value is now touching January 2024 levels around the 0.62330 ratio. Trading conditions as always in the NZD/USD are fast this morning.
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Having accomplished a solid run higher the past few weeks, speculators should become more cautious as they look for more upside potentially. Financial institutions early this week while sustaining the higher price level have certainly pumped the brakes a bit and slowed the short-term bullish momentum. Not every day of trading produces a tremendous amount of price velocity. The ability of the NZD/USD to climb rapidly will likely begin to run into questions about fair market price.
Speculators who are technically inclined will probably find a rather tight but quick range in the coming day as the NZD/USD lingers within its higher price realm. The currency pair is touching important highs last seen in January of this year, but is still below ratios attained in December of 2023 when the NZD/USD challenged the 0.63400 marks and above/USD and Realistic Targets for Bullish Traders
Day traders should not get overly ambitious. The momentum upwards created in the NZD/USD has been solid, but additional impetus is likely needed to push the currency pair towards news highs. Speculators who want to bet on more upside may be proven correct, but limited and quick hitting targets should be the focus.
- If the NZD/USD can maintain current values over the 0.62200 level today and into tomorrow, this may be a signal some financial institutions are still looking for more upside.
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The U.S will release vital GDP statistics tomorrow and this will stir the NZD/USD. - If U.S growth and the price index numbers are weaker tomorrow this could propel the NZD/USD higher, but traders should use risk management because volatility may be sparked which could cause short-term reversals too.
NZD/USD Short Term Outlook:
Current Resistance: 0.62350
Current Support: 0.62240
High Target: 0.62450
Low Target: 0.62080
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