NZD/USD Analysis Today 12/02: Faces Choppy Trading (Chart)

(MENAFN- Daily Forex) The NZD/USD experienced a brief run higher early this morning, but has seen selling again dominate the past couple of hours and is trading near the 0.56500 ratio with a wide spread being displayed.

Nervous conditions in global Forex continue to create headwinds for the NZD/USD. After trading near a high of 0.56900 late last week on a few occasions, the currency pair has once again seen selling have an effect, a low around 0.56300 was challenged yesterday. financial institutions are dealing with a lack of clarity regarding the potential of tariffs from the U.S and a cautious sounding Federal Reserve, which continues to spark some USD risk adverse centric buying.

Traders who want to take advantage of the choppiness and use risk taking tactics may find opportunities via support and resistance levels. The NZD/USD has provided rather durable support around the 0.56300 since the 4^th of February, while resistance has proven rather capable of producing reversals lower around the 0.56700 vicinity with outliers.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Lack of a Trend and Choppy Trading in the NZD/USD

While some speculators may be prone to look for sustained trends in the NZD/USD , the current reality is that volatile conditions in a rather tight price range may persists. The U.S will release Consumer Price Index data today. The inflation numbers from the U.S are important, but talk rhetoric from the Federal Reserve continues to reflect a cautious tone and worries about inflation potentially remaining stubborn.

There is also the sometimes sudden pronouncements from President Trump that financial institutions are dealing with and causing nervousness. The combination of noise is not going to help create a sustained bullish mode in the NZD/USD in the near-term. While optimistic bullish New Zealand Dollar speculators may think the mid-term should be better for the NZD/USD, current conditions highlight the significance of technical perceptions geared with an understanding of behavioral sentiment for Risk Management in the NZD/USD Wagers

Traders who believe financial institutions will continue to be buyers at lower depths and prove there is a solid support level cannot be faulted. However, the NZD/USD has traded below the 0.56000 level before.

• Using the 0.56400 to 0.56300 zones as a place to launch short-term buying positions may prove worthwhile, but strict risk management is needed to protect against the sudden emergence of stronger selling become a growing tide.
• It might be that lackluster perspectives about the NZD/USD are factored into the currency pair already, but if risk adverse conditions grow more selling could be seen under current circumstances.

EURUSD Chart by TradingViewNZD/USD Short Term Outlook:

Current Resistance: 0.56560

Current Support: 0.56405

High Target: 0.56700

Low Target: 0.56290

Ready to trade our daily Forex analysis ? Here's a list of the brokers for forex trading in New Zealand to choose from.

MENAFN12022025000131011023ID1109199810