NZD/USD Forecast November 3, 2016, Technical Analysis

The New Zealand dollar rallied significantly during the day on Wednesday, breaking well above the 0.72 level, and continuing much higher. Because of this, I feel that the market is ready to break out to the upside and although we may be a bit overextended at the moment, I believe that it is only a matter time before the buyers return after a slight pullback. The 0.72 level had previously been resistive, and now should be supportive just as it had been during the month of September. Because of this, I am looking to the shorter-term charts for pullbacks to show signs of a bounce, support, or any positivity at all. Ultimately, I believe that the market will reach towards the 0.75 handle given enough time.
Keep in mind that the New Zealand dollar is of course a very sensitive to risk appetite and as a result we could get quite a bit of volatility. However, it appears of the US dollar is falling directly in relation to the presidential polls shifting. If that’s the case, it would make sense that the US dollar continues to sell off as the markets trying to reevaluate all the potential risks coming from the political spectrum. However, I think we have been trying to build up momentum for a while and the fact that we made a “higher low” recently and of course the uptrend line seems to have held, it makes quite a bit of sense that we are going to continue to go higher.
Short-term charts might be the way to go, as I believe that the volatility will make it difficult to look for daily trades. I believe that continuing to buying the New Zealand dollar on the dips will probably work out the best. With this, you will have to keep an eye on your trades, and perhaps your position size is a little bit smaller than usual, but given enough time I do think that you can make quite a bit of profit to the upside at this point. I don’t have any interest in selling after this move.