NZD/USD Analysis Today- 19/09: Bullish After Fed Cut (Chart)

(MENAFN- Daily Forex) The NZD/USD shot up like a rocket upon the U.S Federal Reserve interest rate cut last night, but in early trading this morning the currency pair has moved back to known ground.

• The U.S Fed interest rate cut of 0.50% on Wednesday caused an immediate jump higher in the NZD/USD.
• An apex of nearly 0.62675 was challenged momentarily.
• A low around the 0.62060 vicinity was approached shortly before the release of the Federal Funds Rate.
• The current value of the USD/NZD at the time of this writing is 0.62150.

Bullish positions in the NZD/USD exchange rate were rewarded yesterday for those who wagered on upside. The rather aggressive rate cut yesterday by the Fed, was then followed by semi-cautious rhetoric from Jerome Powell, who affirmed the U.S central bank will continue to decide on the prevailing Federal Funds Rate on a month to month basis per its FOMC meetings.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money NZD/USD Game of Catch Per the Federal Reserve's Actions

The Fed essentially played catch up in the minds of many analysts yesterday due the fact that the Federal Reserve should have cut its interest rate by 0.25% in late July when instead, the U.S central bank decided to do nothing which helped create widespread financial market chaos on the 5th of August. The NZD/USD has reacted to all scenarios. The ability to rumble higher last night touched values seen in late August.

The move per the Fed's announcement in the NZD/USD merely reconfirmed financial institution thoughts regarding where interest rate policy should be. The move lower this morning has brought the NZD/USD to a position in which traders will now have to consider their short-term outlook compared to the mid-term knowledge the U.S Fed intends on lowering the Federal Funds Rate if it can. In other words, the NZD/USD is now within an established known higher territory which may be considered fair equilibrium.
Choppy Trading to Follow into the Weekend Perhaps

Now that the U.S Fed has said what many financial institutions believed they should have said more than one month ago, the NZD/USD will battle its current value and technical traders may find their perspectives worthwhile. The NZD/USD has been higher over the mid-term, values in late August touched levels not seen since late December 2023, but traders need to be realistic regarding their targets to the upside.

• Before traders bet blindly on the potential of more bullishness by the NZD/USD they will have to make sure current resistance levels prove vulnerable.
• The 0.62200 to 0.62300 realm may prove important in the short-term.
• Traders should wait to see sustained support levels hold before they initiate buying positions.

NZD/USD Short Term Outlook:

Current Resistance: 0.62190

Current Support: 0.62120

High Target: 0.62490

Low Target: 0.62050

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