The NZD/USD has provided speculators with a serious charge upwards the past handful of days, this after the currency pair enjoyed the benefits of a shift in behavioral sentiment in financial institutions. The NZD/USD early last Wednesday touched the 0.55000 vicinity which were important long-term lows, and technically areas which have produced upwards traction. While technical traders may point to the support levels last week as being impetus for the moves higher, that is certainly not the whole story.
As of this writing the NZD/USD is around the 0.59150 ratio with fast conditions evident. The broad Forex market has seen major currencies gain and the NZD/USD has correlated to the knock on effects seen via financial institutions that appear to be leaning into a weaker USD centric outlook. Tariffs remain a concern for all investors, but for the moment the NZD/USD along with other asset vehicles have taken on risk appetite and this may continue to find traction.
NZD/USD Mid-Term Highs Now on Display
One week ago after having to consider long-term support levels which threatened historic lows, the NZD/USD is now traversing mid-term highs as traders have literally put the currency pair back within values seen in the second week of November 2024. This is important for traders to consider, because this was the time period after the U.S election.
The NZD/USD remains below levels seen in late October and early November when the 0.60000 vicinity was being challenged. Financial institutions while trying to trade based on more optimistic notions, still have a lack of clarity they are being confronted by and this may lead to some traders pumping the brakes and becoming cautious at the current price levels.
Swirl of Rhetoric and Holiday Trading on Horizon
With the NZD/USD in higher levels, traders need to consider there are still concerns regarding the U.S White House to suddenly deliver a rather loud dose of tariff noise, which could cause volatility in Forex. However, for the moment traders and financial institutions appear more calm and are considering the perspective that negotiations may produce results that work.
- Also the NZD/USD may be factoring in a potential interest rate cut from the U.S Federal Reserve in the coming months which many analysts believe is going to be needed.
- NZD/USD traders should remember that volumes will start to become lighter on Thursday as the long holiday weekend arrives for many financial institutions because of Good Friday and Easter.
- Conditions may become choppy going into the weekend as large players position for a few days of non-trading.
NZD/USD Short Term Outlook:
Current Resistance: 0.59220
Current Support: 0.59130
High Target: 0.59600
Low Target: 0.58850
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