- The New Zealand dollar has rallied a bit during the trading session on Wednesday, as we have seen quite a bit of momentum.
- Now that being said, keep in mind that Thursday is Independence Day and Independence Day is going to keep the Americans out of the market.
- That will bring in a lot of liquidity issues, but overall, it's worth noting that we did bounce from a significant support level at the 0.6050 level.
- That's an area that I think continues to see a lot of support and resistance and market memory.
Upward Momentum to Continue?
So, I think given enough time, we will probably grind our way higher, perhaps back to the 0.62 level. That being said, keep in mind that the jobs number in the United States comes out on Friday, and that continues to be important. So that could cause a lot of volatility. We'll just have to wait and see. If we were to break down below the 0.60 level, then it's likely that the market will go looking to the 0.5850 level.
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I don't necessarily think that's going to happen right away, but I do recognize that it could be a big deal. It's worth noting that the NZD/USD market has struggled to break above the short-term support resistance area in the form of 0.61. With this, I think you have a situation where we continue to see a lot of choppiness based on the idea that the New Zealand dollar is also considering itself to be a commodity based currency and therefore it has a lot of external pressures on it, specifically Asia, global growth, etc.
So, with all that being said, I do think you continue to see a lot of noise, but as things stand right now, I think we stay in the same consolidation area that we've been in for two months. This makes a lot of sense, as there is a general malaise in the middle of the summer, and this is a year that quite frankly doesn’t look to be any different.
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