Quick-hitting NZD/USD trades in the near term may be the best wager for day traders and they should use stop losses with conservative leverage to make sure holiday spikes do not cause expensive losses.
The NZD/USD has gained additional ground after the U.S Federal Reserve Meeting Minutes indicated a potential change to U.S interest rate policy.
As of this writing the NZD/USD is trading near the 062600 ratio after attaining further upside momentum in the past day. The NZD/USD is now challenging values it has not traversed since the middle of August 2022. The upwards move in the NZD/USD picked up more price velocity last night, when the U.S Federal Reserve’s Meeting Minutes demonstrated several key decision makers within the U.S central bank favor curtailing its hawkish interest rate policy.
NZD/USD is Trending Upwards and Could Have Room to Grow
Speculators who enjoy pursuing the NZD/USD and have experience likely know the currency pair has a unique ability to trend. However, this comes with clear warnings, because there are no one-way avenues when trading. Also, day traders run the risk of using too much leverage and suffering as natural reversals during a trading day move against a chosen position.
On the 13th of October the NZD/USD was trading near the 0.55210 ratio. The move upwards since then has been rather steady, but there have certainly been reversals lower which have tested the fortitude of traders pursuing upwards price action. Having now attained a high not seen since the middle of August, technical traders need to pull out six-month charts for consideration. On the 11th of August the NZD/USD was trading near the 0.64650 ratio.
Holiday in the U.S Today means lighter than Normal Trading Volume for NZD/USD
While traders may want to pursue upwards price action immediately with the NZD/USD, they must acknowledge that today and tomorrow lighter trading volume will be displayed in Forex. The U.S is celebrating Thanksgiving, and financial houses are shuttered which means transactions will drop dramatically; this can cause sudden spikes in prices for the NZD/USD that can produce costly surprises.
- The current resistance for the NZD/USD appears to be the 062700 mark, if toppled speculators may begin contemplating the 0.63000 ratio, but because of holiday trading, speculators should remain realistic with targets and look for closer goals.
- Quick-hitting NZD/USD trades in the near term may be the best wager for day traders and they should use stop losses with conservative leverage to make sure holiday spikes do not cause expensive losses.
While upside values look attractive to pursue, traders need to be realistic today and tomorrow because of the limited trading. Take profit and stop loss orders are encouraged within risk management to protect against price action which may emerge suddenly. The NZD/USD may be in the midst of a solid bullish trend, but traders should not get overconfident. Bullish expectations should be sought with a solid amount of patience and care.
NZD/USD Short-Term Outlook:
Current Resistance: 0.62690
Current Support: 0.62410
High Target: 0.62990
Low Target: 0.62010