NZD/USD Forecast October 12, 2016, Technical Analysis

The New Zealand dollar fell significantly during the course of the session on Tuesday, reaching towards the 0.70 level below. I think that short-term rallies will occur, but they will also end up being selling opportunities as you can take advantage of a market that looks very bearish longer-term. Ultimately, I believe that we will break down below the 0.70 level, but it is going to take quite a bit of momentum to do that. Pay attention to the commodity markets, they of course have an influence on the New Zealand dollar as well, and as a result if they fall, this market should continue to go lower.