The New Zealand dollar had a volatile trading session on Wednesday, initially breaking out to test the 0.6150 level before falling sharply. Despite the scary candlestick appearance, the range for the day was only about 90 pips, so the situation isn’t as dire as it seems.
Looking ahead, if the market drops below the 200-day EMA, it could potentially fall back to the 0.60 level. Global economic uncertainties are impacting the Kiwi dollar, so it’s important to monitor the situation closely. The NZD/USD market is expected to remain turbulent in the near future.
Traders should be cautious with position sizing, ensuring it’s reasonable but large enough to capitalize on market movements. The current range is between the 50% and 61.8% Fibonacci retracement levels, a zone that attracts technical traders.
Breaking above the 61.8% Fibonacci retracement level could lead to a move towards the 0.6350 level. Despite the choppy behavior expected, the market is at a significant turning point that warrants attention. A potential significant move may be on the horizon, making it an opportune time to enter the market with the right momentum.
For those interested in trading Forex, consider consulting a list of brokers for forex trading in New Zealand.