Remember, you have to look at this not just through the lens of the Fed, but is the global economy continuing to expand, so there are a lot of external forces here. NZD/USD showed some „movement risk” during Thursday’s session, but it’s worth noting that we’re still very much in consolidation territory. So I think you probably have to look at it through the lens of the market when you’re trying to figure out what to do next. Below , we have the 200-day EMA below the 0.63 level, but at the same time, the level above 0.65 continues to offer resistance. In this scenario, we are likely to face a lot of back and forth and indecisive trading. Advertisement image Take advantage of today’s market opportunities TRADE NOW It also makes sense that we wouldn’t be willing to take big risks as liquidity starts to fall apart. We are in a situation where the market is starting to focus more on the next year and not much would have happened in the next 2 hours. Volatility Up Front Remember that the New Zealand dollar is heavily leveraged by both Asian demand and global growth. There are a lot of cracks in the global economy right now, so I think it makes sense that we have to be careful now. If the market were to break below the 50-day EMA, this could confirm the Kiwi dollar’s exhaustion and send it to the 0.60 level, which I think is a very real possibility. It’s hard to put too much weight on the market over the last couple of weeks, simply because the big companies have invested heavily. On the other hand, if we were to reverse and break above the 0.65 level, NZD would probably then reverse to the 0.6750 level and then the 0.68 level, which was a bit interesting earlier. . Remember, you not only have to look at this through the lens of the Fed, but is the global economy continuing to expand, so there are a lot of external forces here. That’s one of the great things about it though, it gives you volatility to trade from time to time. Based on that, I am looking at this option with great interest.