The NZD/USD has found a middle ground emerge the past handful of days as financial institutions clearly seem intent on bracing for a long U.S holiday weekend and risk events on the calendar.
The NZD/USD is around the 0.60775 ratio as of this writing. Financial institution have brought the currency pair squarely back to the middle of its near-term range as they position before the U.S jobs numbers which will be published in a few hours, the debate regarding the U.S spending bill in Congress, the 4th of July holiday in the U.S tomorrow and perhaps topping it off the July 9th tariff deadline set by President Trump.
The NZD/USD is within the higher part of its one, three and six month technical charts, but headwinds the past couple of days have stopped for the moment appearances of movement upwards. The NZD/USD did touch the 0.61200 vicinity on Tuesday of this week, but perhaps the risk horizon events looming have caused caution to build.
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Near-Term Wagers and Optimism Mid-Term
While financial institutions have kept the NZD/USD within sight of high, and trading over the 0.61000 did occur on Tuesday and Wednesday, today’s price action shows that for higher levels to be sustained additional positive impetus will be needed. Perhaps a simple ratification of the U.S spending bill would inspire global Forex to lean into their USD weak centric notions more.
However, if the U.S Congress does not pass the budget by later today, the approaching long holiday weekend may see additional caution. Support and technical levels short-term in the NZD/USD may remain a playground for speculators. It should also be remembered that Forex volumes could be significantly lower tomorrow with the absence of U.S institutions. Traders may feel confident about the pursuit of a higher NZD/USD over the next few weeks, but for the moment conservative approaches may prove wise.
NZD/USD Betting Ground Today and Tomorrow
The U.S jobs numbers may cause a reaction in the marketplace today, but it is likely they will be overshadowed by the political maneuvering in the U.S Congress. President Trump certainly wants to get his budget deal approved before Independence Day, but will this be accomplished?
- If the legislation goes into this weekend without a deal being made, risk adverse trading may be seen in the global markets.
- Optimists may want to pursue resistance levels today and tomorrow in the NZD/USD.
- However, those who believe caution will dominate may believe looking for support as a target with selling positions is the better choice short-term.
- Quick hitting perspectives may be the best tactic by all day traders today and tomorrow in the NZD/USD.
NZD/USD Short Term Outlook:
Current Resistance: 0.60795
Current Support: 0.60750
High Target: 0.60860
Low Target: 0.06680
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