The NZD/USD has come off of lows around the 0.56475 ratio this Monday, and as of this writing is near the 0.57400 level with fast trading being displayed in a known range.
After testing lows early on Monday which had not been seen since the 4th of March, the NZD/USD has been able to produce upwards momentum. The broad Forex market is nervous today and this will continue into tomorrow. Speculators and financial institutions understand the shadow the U.S White House is causing in the broad markets right now. The NZD/USD is trading around the 0.57400 level as of this writing which is a solid accomplishment considering the risk adverse environment which threatens currently. Fast markets abound.
The lows of 0.56475 seen on Monday have certainly seen a reversal higher and financial institutions are clearly embracing the notion that the low was oversold. However, traders should be braced for stormy Forex conditions over the next 24 hours as President Trump’s tariff policies are made public. Financial institutions will create dynamic conditions which will test ranges.
NZD/USD Price Velocity a Near Certainty
The NZD/USD is historically a currency pair that is capable of delivering strong price velocity and speculators will need to use risk taking tactics in a logical fashion near-term. The outcome of the Trump tariffs are not known and it is likely that some policies will remain unclear. This opens the door for choppy fast trading in the near-term as large players react to uncertainty. The ability of the NZD/USD to climb back above the 0.57000 level is good, but traders will likely see tests of known support and resistance levels short-term.
Not only should day traders expect a wide price range to be seen in the coming hours, but they should also anticipate wider spreads via bids and asks. Using entry price orders with the NZD/USD is always recommended, but today it may be a necessity in order to get fills that do not cause massive surprises. Support levels between the 0.57300 to 0.57200 should be watched in the short-term to see if they prove steady.
Waging in the Midst of Stormy Forex Conditions
Perhaps today will prove to be a non-event for global Forex and the broad markets. However, the most likely story is that trading conditions will grow volatile in the coming hours as rumors turn into policy statements from the U.S White House, which ignite tantrums in the NZD/USD and other major currency pairs.
Barometers regarding risk adverse sentiment should be used by NZD/USD traders comparing price action to the SGD/USD and USD/JPY.
Traders who are intent on betting today in the NZD/USD market need to acknowledge a casino like landscape may be seen.
Take profit orders cashing out winning positions before they vanish because of turbulent conditions are strongly advised.
NZD/USD Short Term Outlook:
Current Resistance: 0.57500
Current Support: 0.57340
High Target: 0.57850
Low Target: 0.57180
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