(MENAFN– Daily Forex) Since reaching a high above the 0.57200 ration last Friday the NZD/USD has shifted lower and near-term support levels are being tested as the 0.56500 has become a barometer.
The NZD/USD is trading near the 0.56630 ratio as of this writing in what appears to be rather cautious proceedings. The U.S federal Reserve will release its FOMC Policy Statement later today, but most financial institutions assume the U.S central bank is going to sound cautious. After being able to produce upwards momentum last week and demonstrating a high of nearly 0.57250 last Friday, the NZD/USD has seen selling again enter as the prevailing force.The NZD/USD remains in the lower historical elements of its value range. The currency pair for the moment is showing the ability to stay above the 0.56500 level via technical support starting last Wednesday. Yes, there were some outliers below, but the price does look like it is a barometer for near-term sentiment. Certainly with long term thoughts the 0.56000 will be looked upon as significant support.Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Nervous Days Ahead as Sentiment Remain SkittishUSD centric strength has been evident since late September and the election of President Trump has fueled the bullishness of the currency. The NZD/USD is trading in a correlated manner with most major currencies but the long-term lower realms being tested in the New Zealand Dollar remains a warning that behavioral sentiment in financial institutions remains ultra fragile regarding outlook.While the USD in the past week has started to show signs of weakness against many currencies, the choppy nature of trading shows broad Forex conditions are risk adverse. This is not likely going to disappear near-term. NZD/USD may believe the currency pair remains in heavily oversold territory, but a sustained move higher may prove difficult to attain. Looking instead for quick hitting bursts upwards when perceived technical support is challenged could provide speculative opportunities/USD Fed Reaction Near-Term to ComeNew Zealand will report Trade Balance and Business Confidence reports early on Thursday, but most of the NZD/USD price action is likely going to be generated via the outcome of the U.S Fed’s policy statement which will affect outlook. However, while the Fed is likely going to sound cautious, it would not be surprising to hear President Trump say publicly that he would like to see U.S interest rates come down.
The potential of debate between Trump and the Fed getting loud could impact Forex and the NZD/USD and create more choppiness.
The ability to move higher last week may entice some traders to believe another attempt at upside is legitimate, but take profit orders are encouraged, because reversals will certainly remain a part of the landscape.
EURUSD Chart by TradingViewNZD/USD Short Term Outlook:Current Resistance: 0.56680Current Support: 0.56570High Target: 0.56890Low Target: 0.56510Ready to trade our daily Forex analysis ? Here’s a list of the brokers for forex trading in New Zealand to choose from.
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