NZD/USD Forecast February 8, 2017, Technical Analysis

The New Zealand dollar initially rallied on Tuesday, and even broke above the 0.7350 level. However, we turned around and formed a very bearish looking shooting star. While I recognize that it is technically a sell signal, I believe that there is a significant amount of support below at the 0.72 level, and therefore I believe the chopping around is what’s most likely going to happen. Further compounding the issue is that the Royal Bank of New Zealand has an interest rate announcement later today. Because of this, I believe that the market is going to be very choppy, but ultimately won’t make much in the way of gains or losses.