- The New Zealand dollar has rallied a little bit during the trading session on Thursday as the 0.5850 level continues to be important.
- This begins pretty significant support that goes back all the way to at least November of 2022.
- Now I think traders will be looking for some type of reason to believe in a bounce.
That being said, I think we also have a situation where a lot of traders are looking at this through the process of whether or not we are actually forming a bottom. If we were to break down below the 0.58 level though, I think the bottom falls out and we could see a lot of US dollar strength across the board. Keep in mind that the Friday session features the non-farm payroll announcement and that will have a major influence on the greenback itself. With this being said I think you have a scenario where the 0.5950 level above is your ceiling and it is going to continue to see that area as trouble. If we can break above there then I think the New Zealand dollar truly takes off.
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Could Stay Rangebound. Still
This is a market that could very well just stay in this same area. And with this, I think you have a lot of curious sideways action at the moment. And if you were a short-term trader, you may wish to take advantage of it, perhaps drilling down to something like the one hour chart and then zooming out, kind of getting a feel for what you're doing. But overall, I think we're on the precipice whether or not the US dollar is going to truly just trounce everything. And this is one of the currency pairs I'm watching for that sign. I'm also watching the Australian dollar, the dollar against the yen and the euro against the dollar all for the same signal.
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