[ad_1]
New long-term lows were made in the NZD/USD yesterday, as the Forex pair awaits impetus from the U.S Federal Reserve’s pronouncement this coming Wednesday.
The NZD/USD hovered near the 0.64100 ratio yesterday and remains within the weakest part of its long term price range as of today. Values of the NZD/USD are traversing prices not sincerely tested since June of 2020. However it should be noted that on the 4th of April, almost one month ago, the NZD/USD was trading near the 0.70300 vicinity.
Traders are certainly aware of the downward cycle the NZD/USD has encountered the past month as financial institutions have positioned their cash holdings, as they anticipate the next interest rate hike from the U.S Federal Reserve. However in January of this year the NZD/USD was trading momentarily near a low of around 0.64850 which highlights the forex pair has moved within these lower depths before and has managed to fight upwards.
While technical traders cannot be blamed for looking at long term charts and can plainly see the NZD/USD was trading near lows of 0.54850 in March of 2020, considerations must be correlated. Downward pressure in the NZD/USD has certainly continued to make short term support vulnerable as new lows have been created. The near term will be volatile as financial houses react to the pronouncement of the U.S central bank which will be published on late Wednesday. The lows of March 2020 were made as coronavirus fears escalated two years ago.
The U.S Fed has made it clear they want to raise interest rates by half a point tomorrow. This hike has been digested into the Forex market already. What investors need to now worry about is what moves the Fed claims it will take in the months ahead and that is causing nervousness. Short term traders need to understand that volatility will be quite rampant near term and choppy trading with spikes need to be anticipated.
Traders who believe the NZD/USD is about to touch lows and start to reverse upwards cannot be blamed. However timing the moment when the NZD/USD truly turns around and starts to become positive may be quite difficult to pinpoint. Traders who think new lows will be seen in the NZD and the 0.64000 mark is in peril and lower depths will be seen cannot be faulted either.
Within the choppy conditions that are likely to be demonstrated near term, speculators would be wise to use entry price orders. Igniting positions and using stop loss and take profit orders, to get in and out of positions could prove to be very helpful in the near term.
NZD/USD Short-Term Outlook
Current Resistance: 0.64710
Current Support: 0.64090
High Target: 0.65480
Low Target: 0.63810
[ad_2]
English 
Turkish