NZD/USD: Bearish Retreat has Speculative Lows in Plain Sight – 22 February 2023
The NZD/USD is trading near short-term lows as its bearish trend remains intact, and speculators must take into consideration potential volatility to be delivered.
The NZD/USD is trading near the 0.62250 ratios as of this writing as the currency pair continues to hover near important lows. Yesterday’s low in the NZD/USD was nearly 0.62030 and on Friday the Forex pair turned in a depth around the 0.61940 mark before being able to reverse higher going into the weekend.
The emergence of a stronger-than-anticipated bearish trend for many speculators has come as a surprise. Selling in the NZD/USD has been brought on because of higher-than-anticipated U.S. inflation data, which has spurred on the notion the Federal Reserve will remain aggressive regarding its monetary policy mid-term.
On the 16th of February, the NZD/USD was trading near the 0.63100 juncture. And on the 2nd of February, the currency pair was almost comfortably perched around the 0.65400 ratio. However, February has delivered consistently fundamentally strong news for the USD and this has been seen across Forex, and the NZD/USD has correlated to the market.
Tomorrow’s Gross Domestic Product numbers from the U.S. will bring forth more potentially volatile data for NZD/USD traders late Thursday. Speculative bulls who believe the NZD/USD has been oversold should be careful in the near term and understand that if growth numbers from the U.S come in stronger than expected tomorrow, the currency pair may challenge lower support levels.
The next two days of trading in the NZD/USD should be expected to remain volatile, particularly as the Preliminary GDP numbers are awaited from the States.If U.S growth numbers come in weaker than expected the NZD/USD could find a burst of buying late tomorrow.However, a stronger-than-expected outcome from the GDP reports could spur on significant selling in the NZD/USD in which late November 2022 values are suddenly challenged.
The 0.62100 to 0.62000 price levels should be watched carefully by short-term traders. If these marks start to seriously be challenged, it might feel logical to look for an upside reversal with a narrowly targeted take profit orders, but it also may prove to be costly.
The trend in the past two and half weeks has been negative and NZD/USD traders should remember the currency pair was near the 0.61940 mark earlier this week. The NZD/USD was also near the same low ratios in early January, meaning if short-term support is broken lower it will also challenge mid-term support ratios.
Current Resistance: 0.62460
Current Support: 0.62080
High Target: 0.62640
Low Target: 0.61825