NZD/USD Forecast January 17, 2017, Technical Analysis

The New Zealand dollar rallied initially on Monday but turned around to form a shooting star. The 0.7150 level above offered enough resistance to cause doubt in the mind of traders. If we can break down below the bottom of the shooting star for the session on Monday, I think that the New Zealand dollar will drop back down to the 0.70 level underneath. Regardless, I prefer the downside but I also recognize that we have seen a significant move higher. Because of this, expect quite a bit of volatility in the market, which of course is highly influenced by the overall attitude of commodity markets.