NZD/USD Analysis Today - 20/11: Support Spurs Bounce (Chart)
Date
11/20/2024 2:38:30 PM
(MENAFN- Daily Forex) After touching a low of nearly 0.58370 on Monday the NZD/USD begin to climb and in early trading today approached the 0.59225 ratio, and then likely to no one's surprise a reversal lower took place.
Fast trading conditions in the NZD/USD have been seen the past few days and the abrupt swings in value are likely not over yet. The currency pair is around the 0.58885 ratio as of this writing, this after touching a high of nearly 0.59225 a few hours ago. The momentum shifts in the NZD/USD are correlating to the broad
Forex market which is behaving with nervous aggression. Day traders tempted to participate in NZD/USD today and tomorrow are cautioned to remain alert and use solid risk taking tactics.
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Lows in the NZD/USD seen on Monday within the vicinity of 0.58370 touched values last seen in late October 2023, yes – a bit more than one year ago. Financial institutions globally continue to showcase their nervousness and the heightened state of risk adverse sentiment they are generating. However, the rush higher since Monday's low and this morning's high which came within shouting distance of last week's apex marks shows some buying power can still be produced NZD/USD Trend Lower
Yet, the move lower after touching this morning's near-term higher levels also highlights financial institutions are not ready to sustain a big move upwards. Day traders have to respect the trend lower even if they believe the NZD/USD is oversold. Retail speculators have to accept the fact that they do not dictate what the value of the NZD/USD should be, financial institutions are nervous globally and this is reflected in the price of the currency pair and all of Forex.
The 0.58900 to 0.59000 realm may now become a target for short-term buying endeavors, but day traders need to understand the large amount of choppiness which has been displayed recently and know that more turbulence is likely coming. The NZD/USD does look oversold, but it can still trade lower. Less ambitious targets higher may prove to be worthy, looking for marks below resistance when buying as goals should be practiced for the moment.U.S Data and the Trump Effect on the NZD/USD
Financial institutions are concerned with their mid-term outlooks which lack clarity and are causing the ground to shift Forex and the NZD/USD. While the U.S Federal Reserve appears to be in a position to cut the Fed Funds Rate again in December by another 0.25, this has not created any bullishness for the NZD/USD.
The USD centric price action in global Forex is certainly being speculated on by folks who think the currency is too strong, but the trends lower for almost all major currencies teamed against the USD have been dominant. Traders should continue to look for quick results that do not open the door to massive amounts of choppiness which is certain to be seen near-term. Take profit and stop loss orders in the NZD/USD are essential.
NZD/USD Short Term Outlook:
Current Resistance: 0.58910
Current Support: 0.58830
High Target: 0.59175
Low Target: 0.58690
EURUSD Chart by TradingView
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