NZD/USD Forecast January 19, 2017, Technical Analysis

The New Zealand dollar initially fell during the session on Wednesday, but found enough support below to turn things around and form a hammer. The hammer course looks very bullish and if we can break above the top of a hammer I think that the market will then try to reach towards the 0.73 level. A breakdown below the bottom of the hammer is of course a negative sign, reaching towards the 0.71 handle. Ultimately, we are a bit overbought but it looks like the buyers are quite done. Volatility will be the main theme.