In the past few weeks, the NZD/USD continued on its upward trend as it became more and more bullish. The currency pair is now trading at 1.092 and could go higher in the next few months. This article will discuss why many believe that this move will continue, as well as shed light on some of the risks and limitations of this trend.
The New Zealand dollar has been trending upwards year to date with a sharp increase since December 2017. This luring upswing has created a lot of curious traders, who are now watching closely for where this big win could take them in terms of profits or losses.
As the New Zealand dollar has risen, the interest in trading it has also grown. This has created a lot of new traders to enter the market, and also attracted many more experienced traders to join them. In fact, since December 2017, there have been over 90% increases in the number of reports (on Trade The Trend and Fib_Trader) regarding new traders entering this market, which is a great sign.
When is the NZD going to fall in value against the USD?
This pair should continue to increase in value as long as it stays above the 1.0800 level and at least that becomes its new support. However, it can be expected that a pullback could happen at levels of around 1.1200 or higher. It is important to note that no one knows when this currency pair will make a turn or have a correction, but the best time to enter this market would be during those pullbacks or corrections because they are likely to lead back up again once they are complete.
What is the current NZD/USD forecast for next week?
Because NZD/USD has not had a trend reversal since mid-December, it doesn’t look much of a strong move either way. Investors are likely to continue to buy this currency pair, which will have them aiming for 1.1270 or higher in the coming weeks. If there is no major event that causes this currency pair to make a turn, then investors are likely to keep on buying and trading it until they start selling.
What is the NZD/USD outlook for next month?
There continue to be no significant economic reports in the coming weeks, so traders are likely to keep pushing this currency pair up. If NZD/USD can climb above 1.1270 then it is expected that it will test levels of 1.1300 or higher where it may enter into range-bound trading for a short period of time. Once again, no one knows when this currency pair will take a turn and make a reversal but as long as there are no major events that affect it, there’s still room for upside potential.
