By: DailyForex.com

The NZD/USD pair fell during the course of the day on Tuesday, but we remain above the 0.84 level. Because of this, I think there is still a bit of support just below, and I’m a bit hesitant to start selling. However, I think that a break below the aforementioned 0.84 level does signal that we will go down to the 0.8250 level, and I would be very bearish at that point in time. I believe that the 0.84 level is massively supportive, as seen during the early part of June. With that, I think that the market will more than likely bounce from there but am not willing to commit any trading capital until I get the right supportive candle.

I believe that a break higher would more than likely send this market looking for the 0.88 level given enough time. That would involve clearing the 0.8525 level, something that’s going to take a bit of momentum, but then again that’s the point. I need to see bullish momentum in order to be involved in this market to the upside.

Remember, the New Zealand dollar is heavily influenced by risk appetite.

The New Zealand dollar of course is heavily influenced by risk appetite, so pay attention to the stock markets and commodity markets on the whole. If they are all basically going higher, that is good for the New Zealand dollar in general. It wouldn’t surprise me if we got a decent bounce from here, but again I need to see the breakout above the short-term resistance in order to consider going long at this point in time.

Ultimately, if we get above there think we could go to the 0.88 level as I mentioned previously, but I think it will be more of a “by on the dips” type of scenario as there is certainly a lot of noise above. With that being the case, I think that’s what’s going to happen, but again I need confirmation as the markets have been so erratic lately.

NZDUSD 82014

Related Articles
  1. Budgeting

    Lost Your Job? 6 Things to Do Immediately

    If you’ve lost your job, shoring up your finances as best you can will make it easier to get back on your feet again when that next position rolls around.
  2. Retirement

    Longevity Insurance: Can You Afford Life into Your 90s?

    A man who reaches retirement age is likely to live until he’s 84. A woman is likely to make it to 86. But what if you live longer?
  3. Investing News

    This Is Why Every Chipotle Is Closed for One Day

    Chipotle Mexican Grill Inc. (CMG) has had a rough year when it comes to food safety. Management is hoping that closing all locations for a company-wide meeting Monday will help resolve the issues ...
  4. Credit & Loans

    What is an Alt-A Mortgage?

    Called "liar loans" for their low documentation requirements, Alt-A mortgages were hot until the subprime crisis. Now Wall Street wants to bring them back.
  5. Credit & Loans

    A FICO-free Loan? See SoFi's Super Bowl Ad

    Non-bank lender SoFi will air its first TV ad during Super Bowl 50. Here's how it's challenging big banks by providing an alternative approach to loans.
  6. Economics

    India: Why it Might Pay to Be Bullish Right Now

    Many investors are bullish on India for all the right reasons. Does it present an investing opportunity?
  7. Personal Finance

    What it Takes to Get a Green Card

    Grounds for getting a green card include having family members in the U.S., being a certain type of refugee or specialized worker, or winning a lottery.
  8. Fundamental Analysis

    The 3 Best Investments When Bull Markets Slow Down

    Find out why no bull market lasts forever, and why investors should shift their assets away from growth and toward dividends when stocks slow down.
  9. Investing

    Retirees: 7 Lessons from 2008 for the Next Crisis

    When the last big market crisis hit, many retirees ran to the sidelines. Next time, there are better ways to manage your portfolio.
  10. Fundamental Analysis

    3 Long-Term Investing Strategies With Strong Track Records

    Learn why discipline and a statistically valid investment strategy can help an investor limit losses and beat the market over the long term.
RELATED FAQS
  1. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  2. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  3. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  4. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  5. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
  6. What is comparative advantage?

    Comparative advantage is an economic law that demonstrates the ways in which protectionism (mercantilism, at the time it ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center