Tuesday, 02 January 2024 12:17 GMT

NZD/USD Analysis Today 05/02: Eyes Recovery (Chart)


(MENAFN- Daily Forex) The NZD/USD is traversing near the 0.56720 mark as of the writing, buying of the currency pair has been stronger early this morning as sentiment clearly has shifted and a more positive outlook takes hold.

On Monday of this week the NZD/USD dropped to a low of nearly 0.55160 this as the currency pair tested depths not seen since October of 2022. Behavioral sentiment in global Forex was essentially in a panic mode on Monday, this as U.S tariff fears caused momentary contagion in all currencies associated with the USD. However, the past day and a half has seen a change of fortune.

While the shift in sentiment and optimistic outlook is not guaranteed to last long-term, in fact it might only remain a catalyst near-term, the fact is the NZD/USD and most other major currencies paired against the USD have recovered some buying. The NZD/USD is near the 0.56710 for the moment with quick changes of value being seen.

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Day traders who choose to pursue the NZD/USD should not get ahead of financial institutions regarding positive outlooks, but if the currency pair is able to maintain its current values above the 0.56700 ratio then a target of 0.57000 may become legitimate. Traders will need to be careful because reversals lower will certainly spark via daily gyrations, but looking for upside in the NZD/USD in the near-term may prove worthwhile.

Yes, there are concerns to still be considered. Let there be no doubt that President Trump is able to cause sudden combustion in Forex and this would have knock on effects with the NZD/USD. However, if some quiet can be found and the U.S White House expresses optimism that potential tariffs against nations within their sights can find negotiated solutions, then behavioral sentiment will cascade through Forex and this will help bullish conditions in the NZD/USD NZD/USD Trading and Resistance

Technically if the NZD/USD starts to flirt with the 056800 level and proves that this resistance level is vulnerable, momentum may continue to build near-term in the currency pair that a recovery to ratios seen before the Christmas holiday may be possible.
  • Traders must not get overly ambitious and use risk taking tactics carefully, but for those willing to wager on the NZD/USD there is a chance that opportunity to take advantage of a shift in sentiment may be possible in the coming days.
  • Risk management via stop loss orders are advised, the NZD/USD trades with fast changes consistently.
  • Support around the 0.56700 to 0.56650 level needs to prove durable.
  • If support can show that it is stable, this may show bullish sentiment is building and looking for a reason to pursue the NZD/USD.

EURUSD Chart by TradingViewNZD/USD Short Term Outlook:

Current Resistance: 0.56750

Current Support: 0.56690

High Target: 0.56800

Low Target: 0.56640

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