NZD/USD Forecast Today 06/11: Looking For A Floor (Video)

(MENAFN- Daily Forex)

• The New Zealand dollar has rallied significantly during the trading session on Tuesday to break above the 0.60 level, a large round psychologically significant figure that of course will attract a few headlines.
• If the market were to break a little bit higher from here, we could rally all the way to the 0.61 level without seeing a major shift in attitude.

After all, the 0.61 level is highly important due to the fact that the 50-day EMA and the 200-day EMA indicators crossing, forming the so-called death cross. Now having said that, I think this is a situation where signs of exhaustion probably open up a selling opportunity. This is a situation where the market is going to continue to see gravity be important.

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Keep in mind that the NZD/USD is considered to be a risk currency, so therefore it needs to be an environment where people are willing to put some risk on. On the other hand, if we turn around and fall from here, the New Zealand dollar has a massive amount of support at the 0.59 level. I think ultimately this is a market that is just kind of holding its breath for the US elections and perhaps more importantly, the Federal Reserve.

The Federal Reserve Press Conference Will Matter

So, the Federal Reserve decision on Thursday, I think, will have a massive influence on what happens next. But given enough time, the markets continue to be noise driven more than anything else. Therefore, I think you have to look at it through the prism of being very small with your position sizing, but also recognizing that given enough time, we will have to bust out of this somewhat malaise trading. The market had sold off quite massively, dropping about 7% from top to bottom. And now I think we're just going to digest some of these gains by the greenback, unless there's some type of massive shift in attitude.

EURUSD Chart by TradingView

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