The NZD/USD has seen its bullish trend reignite the past few days of trading and short-term resistance levels have proven vulnerable. Traders who are contemplating further upside action will likely want to watch the 0.72000 carefully and see that values are being sustained above this mark. If the price of the NZD/USD is able to maintain its current momentum and establish support levels which prove adequate, the Forex pair will seemingly be indicating that it is an opportunity to pursue additional upside.
The NZD/USD was trading near the 0.710000 level when trading began this week and its rapid move upward has come on the heels of weakness via the USD certainly, but it has also occurred as global risk appetite has proven hungry. If the NZD/USD can maintain the 0.72000 to 0.71870 junctures as tangible support short term, traders may be enticed to be buyers and target higher resistance.
Late last week, the NZD/USD did test higher levels near the 0.72360 level but then experienced a rapid sell-off. The 0.72360 mark has proven rather durable as resistance since the middle of January, but earlier in the month, the NZD/USD was trading near highs of 0.73000. These higher levels could prove to be attractive for speculators with their eyes on bigger targets. The last time the NZD/USD seriously traded above the 0.73000 mark was in April of 2018.
The USD remains weak against many emerging market currencies and the NZD/USD mirrors technical charts seen across the board in Forex. The ability of the NZD/USD to provide a serious bullish trend since its lows in March 2020 may feel as if it should run out of steam at any moment, but speculators may prove wise not to bet against the trend quite yet.
Traders should consider buying the NZD/USD on slight pullbacks in the market. The 0.72000 level may prove important psychologically near term, and if the New Zealand dollar sustains it value near this ratio, it could prove to be an attractive place to launch a buying position. Traders targeting higher values with the NZD/USD are likely making the right risk/reward scenario decision, because support below may prove to be quite adequate near term.
NZD/USD Short-Term Outlook:
- Current Resistance: 0.72230
- Current Support: 0.71870
- High Target: 0.72440
- Low Target: 0.71550
