Latest News

NZD/USD: Bullish Momentum Slows after Strong Move Upwards – 09 November 2022

The NZD/USD is trading within the upper tier of it mid-term price range, but after achieving high water marks yesterday has reversed lower.

Advertisement

The NZD/USD is trading near the 0.59300 level as of this writing, which is quite an accomplishment compared to its value of 0.55100 which it briefly flirted with on the 13th of October. Yesterday’s trading saw a high which came within sight of the psychologically important 0.60000 ratio, which the NZD/USD last saw sustained price action for in the second week of September.

Reversal from Higher Prices may be Attractive for Speculators of NZD/USD

Speculators may find the slight backtracking which has developed in the NZD/USD as an opportunity. Certainly there are no guarantees, but traders who enjoy wagering on the NZD/USD, still may be tempted to try and ride the bullish momentum within the currency pair which has developed the past few weeks. The reversals lower after resistance has been penetrated are a reminder there are no simple Forex trades and that risk management must always be used. However, moves lower in the NZD/USD to the perceived support ratios may generate additional buying positions.

Current Support Levels are nearby and may Produce Intriguing Insights for the NZD/USD

If the 0.59300 level proves to be durable in the short-term, this would be a solid indicator additional buying momentum could erupt in the NZD/USD. Inflation data from the U.S will be released tomorrow via Consumer Price Index statistics. However, financial houses seemingly have shifted their behavioral sentiment and have certainly begun to show signs of selling the USD.

If the 0.59300 to 0.59200 support levels are maintained, this may be an intriguing area to ignite buying positions of the NZD/USD.Looking for too much movement higher is a dangerous game. If a trader accomplishes a move higher and ‘shows’ a profit and doesn’t want to ‘cash out’ their winning bet, they are urged to raise their stop losses higher to protect gains if they want to pursue the NZD/USD longer.

The NZD/USD continues to be a currency pair which has a unique ability to produce solid technical trends. The move lower in the NZD/USD since hitting highs yesterday can be considered a healthy part of Forex trading by speculators and an opportunity.

The 0.60000 level continues to look like a magnet for speculators, but it has also proven to be tough short-term resistance. If the NZD/USD is able to start challenging the 0.59600 to 0.59700 levels above and sustain price action within that vicinity, the near-term may be able to produce additional gains. Rome was not conquered in one day however, traders need to be patient while pursuing their price goals and be willing to cash out winning trades if they are accomplished.

NZD/USD Short Term Outlook:

Current Resistance: 0.59650

Current Support: 0.59250

High Target: 0.60125

Low Target: 0.59010

Ready to trade our Forex technical analysis? Here are the best Forex brokers to choose from.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

More in:Latest News

Leave a reply

Your email address will not be published. Required fields are marked *