NZD/USD Analysis Today 10/10: Bounces Back After Lows -Chart

(MENAFN- Daily Forex)

• The NZD/USD is traversing the lower depths of its near-term values this morning, but has actually produced some upwards mobility after hitting a low around the 0.60500 mark yesterday.
• The interest rate cut from the Reserve Bank of New Zealand was anticipated by most analysts, but the NZD/USD did fall on the report.

However, the ability to climb from yesterday's lows is showing that financial institutions which took the NZD/USD to highs of nearly 0.63800 late in September may believe the currency pair has entered oversold territory. There are risks events still on the table for the NZD/USD which will deliver impetus today and tomorrow. Technical traders with short-term perspectives need to know the U.S will be publishing inflation data soon Support and Ideas of Upwards Mobility in the NZD/USD

Yes, the NZD/USD has suffered selling since the end of September, but this correlates to the broad Forex market as the USD has gotten stronger. The selling in the NZD/USD certainly has taken place because large traders believed the currency pair had been overbought, but a degree of risk adverse speculation also fueled the decline. Yesterday's interest rate cut from New Zealand combined with the nervous sentiment regarding the U.S Fed's next moves is also creating some headwinds for the NZD/USD in the near-term.

Today's Consumer Price Index numbers from the U.S will spur on potential volatility in the NZD/USD over the next day. The lower values hit yesterday during fast market conditions touched values last seen on the 16th of August. This morning's upwards momentum, though slight, has again taken the NZD/USD slightly above the important support level of 0.60500. If the 0.60850 resistance level begins to get challenged in the short-term this would be an intriguing signal and show some financial institutions may believe higher levels are still attainable versus Mid-Term NZD/USD Outlooks

The NZD/USD has a known historical tendency to produce rather solid trends. The currency pair is still within a healthy bullish price realm mid-term, but it is traversing an interesting middle ground via a three month chart. If the NZD/USD can hold onto value over the near-term and U.S data continues to give the Federal Reserve reasons to cut the Federal Funds Rate by another 0.25 in November, this could fuel some buying.

• However, choppy conditions in the NZD/USD will likely play out in the near-term and into next week until financial institutions feel they have more clarity.
• The short-term and mid-term likely carry different outlooks by analysts.
• Behavioral sentiment remains fragile, but the slight move upwards this morning in the NZD/USD shows folks still believe upside has potential.
• It is a question of when a sustained buying trigger may ignite again, today's U.S data will provide some insights.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money NZD/USD Short Term Outlook:

Current Resistance: 0.60790

Current Support: 0.60765

High Target: 0.61250

Low Target: 0.60525

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