NZD/USD Analysis Today - 23/10: Lower Support Holds (Chart)
Date
10/23/2024 2:38:37 PM
(MENAFN- Daily Forex) Day traders continue to be offered an opportunity in the NZD/USD via technical perceptions, but cautious trading has kept the currency pair within lows and choppy trading is still ahead.
The NZD/USD is lingering within the lower depths of its two month range. Cautious financial institutions have created headwinds in Forex as USD centric strength has become rather consistent, this as the U.S election edges closer. The NZD/USD is near 0.60325 as of this writing. While the currency pair has certainly been able to stay above the 0.60000 which is important psychologically, day traders and financial institutions have not seen many signs of a sustained bullish trend showing any ability to emerge.
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Support however may prove to be the catalyst for speculators in the near-term. The NZD/USD is within the lower depths of its range. A one month chart is not particularly pretty for any traders who have been attempting to take advantage of movements higher since late September. However, some still may be tempted to use technical support in order to look for quick hitting reversals upwards. Yet, the consideration of timing the market is difficult and risk management needs to be used properly Environment for Bullish Traders of the NZD/USD
Because the NZD/USD has provided rather durable support in the near-term traders may believe the currency pair cannot go lower. The idea that cautious financial institutions will reach a point in which they will find a coordinated price level and say 'no more selling' is alluring, but it may be wrong. The downward trend in the NZD/USD is being controlled by behavioral sentiment not only because of considerations regarding the U.S election, but because of worries the U.S Federal Reserve may turn less dovish in early November.
Tomorrow's Manufacturing PMI reports from the U.S will get some attention, so will the weekly Unemployment Claims, but most consideration is waiting on important data coming next week, namely the GDP data and Non-Farm Employment Change results. The NZD/USD is likely to remain within the lower depths of its recent bearish trend and find it hard to fight upwards in the coming days with any great accomplishments.
EURUSD Chart by TradingView
Short-Term Resistance in the NZD/USD
Timeframe consideration within the NZD/USD is important. The near-term will almost definitely continue to see nervous trading and may continue to hover near lows. The NZD/USD exchange pair needs a strong dose of impetus in order to suddenly burst higher, but when this will come is still questionable.
While it may be attractive to say the currency pair is oversold, mid-term visions of bullish momentum should not cause short-term traders to lose focus.
The NZD/USD could continue to face rather cautious headwinds over the next few trading days, betting against the prevailing behavioral sentiment could prove costly/USD Short Term Outlook:
Current Resistance: 0.60365
Current Support: 0.60280
High Target: 0.60525
Low Target: 0.60190
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