Bearish power puts long-term lows in perspective
NZD / USD continues to show a strong bearish trend over the medium term and long term lows are now fully in sight for traders.
The old adage that the trend is your friend is appropriate with the NZD / USD. The mid-term range of the Forex pair consistently demonstrates an ability to clear support. Yes, the NZD / USD certainly produces some attractive times with higher reversals, but since the third week of May, the Forex pair has demonstrated a fairly sustained decline.
As of this writing, the NZD / USD is near the crucial 0.69000 level and it traded briefly below this point earlier today. If this ratio turns out to be vulnerable and prices stay below this barometer, it will certainly prompt stubborn bullish speculators to question themselves. The last time the current NZD / USD values were seriously traded was in November 2020. And if the current support levels do not hold up, traders will need to consider price targets that were last seen. times in the first week of November 2020 nearly 0.68300.
NZD / USD appears to be oversold, but the current trend remains problematic for speculation. Courageous traders who believe the NZD / USD has upside potential should use their risk-taking tactics with finely crafted stop loss orders and not overly ambitious take profit targets. Today’s low of near 0.68885 should serve as a reminder that volatility is ample within NZD / USD. The 0.69000 is without a doubt important and should be watched for in the short term.
Traders who are tempted to be long within the current price limits are encouraged to use long limit orders on NZD / USD during slight declines. However, if the 0.68950 mark is seen and starts showing that it is struggling to break above the key 0.69000 level, this could be an indicator that a further drop in prices will ensue and levels support below could prove to be attractive, particularly if they are fast trading is displayed due to scheduled softward trading.
The NZD / USD is certainly near intriguing support levels that have not been tested since November 2020. Traders cannot be blamed for believing that the bearish momentum in the Forex pair is doomed to run out of power sooner rather than later, but betting on this should be done with caution and with careful leverage.
NZD / USD Short Term Outlook:
Current resistance: 0.69400
Current support: 0.68950
High target: 0.70300
Low target: 0.68600