August 14, 2022
  • August 14, 2022

Strong lower reversal after a month high reached

By on May 13, 2021 0

After hitting one-month highs just three days ago, the NZD / USD is now crossing close to significant support levels after a strong downward reversal.

If a trader held back last month from speculating and returned to the Forex markets today, he couldn’t be blamed for believing that nothing has happened in NZD / USD over the past few weeks. However, they would quickly find out that the technical charts have proven wrong and that significant price action with strong reversals has been demonstrated within the Forex pair.

As of this writing, the NZD / USD is trading near the 0.71500 mark, but this price is only shown three days after approaching a one-month high of near 0 , 73000 Monday. The 4e May, it should also be noted, the NZD / USD was trading near a low of 0.711400. New Zealand dollar speculators need to understand that the potential for volatility is always present.

Significant support near the 0.71300 level should be watched for the near term. If this level of support manages to curb the sudden emergence of a bearish momentum in NZD / USD, it could certainly trigger another wave of buying. Global Forex markets have turned out to be choppy over the past few days and a half, as concerns about investor sentiment are evident. If current support levels fail to delay another selling storm, traders cannot be criticized for believing that the 0.71200 level could be a target.

Oddly enough, the NZD / USD is in the middle of its medium-term price range. A maximum of nearly 0.74650 was produced on the 25e of February, which quickly saw a downward reversal and a rating of 0.71000 was tested in the first week of March. From the 23rd From March to mid-April, the price range of NZD / USD was mainly between 0.71000 and 0.69450. But since the 14e April, the NZD / USD did not trade significantly below the 0.71200 mark.

As the NZD / USD is trading near its current values, traders may think that the support levels will prove useful as a spot to activate long NZD / USD positions. However, it may prove more practical to use the lower support levels as the stop loss ratio, and actually buy the NZD / USD if it is able to keep its current price above and near the junctions of. 0.71525 to 0.71450 on smaller movements lower. The volatile New Zealand Dollar price action means traders need to use limit orders, but they also need to be a bit aggressive at times to trade in NZD / USD.

NZD / USD Short Term Outlook:

Current resistance: 0.71850

Current support: 0.71300

High Target: 0.72180

Low target: 0.71100