The NZD/USD has traversed lower in the last handful of hours and is now within the middle of its one week trading range.
- The NZD/USD pair is near the 0.61292 ratio as of this writing having come off a high around the 0.61700 level seen yesterday.
- The decline in the NZD/USD likely was influenced by the better than expected Consumer Confidence reading from the U.S yesterday, but while a downtrend was certainly seen the currency pair remains within the middle of its one week chart.
Traders may now sit back and try to gauge their perspectives via technical charts as they also wait on tomorrow’s critical GDP statistics from the States. The growth and inflation reports via the Gross Domestic Product numbers will be an important lynchpin for Forex tomorrow. However between then and now speculators will be able to likely take advantage of existing behavioral sentiment.
NZD/USD Higher Support Levels Appear Durable for the Moment
While the NZD/USD certainly did lose ground early today, this occurred after a high water mark was reached yesterday that had last been seen on the 14th of March. Meaning that while the better U.S Consumer Confidence numbers on the surface helped ignite selling, it could have also been the fact that the NZD/USD was testing mid-term values which sparked some profit taking. Behavioral sentiment when one and three month charts are inspected may lead some traders to acknowledge the NZD/USD remains in relatively optimistic bullish territory.
It is possible that financial institutions that have certainly shifted towards a more dovish outlook for the U.S Federal Reserve are now turning slightly cautious before Thursday’s GDP reports are released. Also on Friday there will be another key data piece via the PCE Price Index, this report is significant for Federal Reserve viewpoints regarding inflation. If these combined reports meet or come in with weaker than expected results, this could prove to be more impetus to buy the NZD/USD. However for the moment, support levels for the next twenty four hours will be important to watch.
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NZD/USD Quick Hitting Wagers Before the Storm Turns Volatile
Speculators may want to use quick hitting risk taking tactics in the short-term to get in and out of positions before the key U.S data releases. The NZD/USD is likely to remain within a rather tight range over the next twenty hours, but this will certainly disappear as the U.S GDP numbers are ready to be published tomorrow.
- If support between 0.61220 and 0.61120 proves durable this could be a positive sign going into tomorrow and Friday.
- Traders looking for additional upside before the U.S reports later this week may want to use support levels to ignite buying positions while looking for reversals higher in the short-term.
NZD/USD Short Term Outlook:
Current Resistance: 0.61350
Current Support: 0.61260
High Target: 0.61515
Low Target: 0.61020
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