NZD/USD Forecast May 15, 2017, Technical Analysis

The New Zealand dollar had a choppy session during the day on Friday, testing the 0.6850 region. This is an area that is also the 50% Fibonacci retracement level from the larger move, and an area that had seen a lot of resistance in the past. Because of this, it’s likely to offer support, so we can break above the top of the daily candle I feel that the market will then find buyers in the market and reach towards the 0.6950 level. If we can break above there, then we can make some real moves. I think it will continue to be choppy though, mainly because of the RBNZ, and it statement recently. That being the case, it makes sense that the market will be a bit tenured live and its moves. After all, the central bank suggested that the global demand for commodities was waning a bit, and that of course will work against New Zealand itself.
Point of inflection
The market currently finds itself at a point of inflection, and if we can break down that of course would be a negative sign. I think at that point we would probably go fishing towards the 0.67 level underneath. Ultimately, this is a market that should continue to find a significant amount of volatility, and that should be reason enough to wait for a break up or a breakdown in this currency pair. This market suggests that there will be quite a bit of volatility, and of course the market will continue to see quite a bit of back-and-forth trading, so you must be very careful. Currently, I think we will probably be more likely to see a bounce, especially after the stability of Friday. However, wait for the move before you follow.
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