NZD/USD Forecast May 19, 2017, Technical Analysis

The New Zealand dollar fell during the day on Thursday, as we found the 0.6950 level to be a bit too resistive. Ultimately, the 0.69 level underneath looks to be supportive just as the 72-hour moving average does as well. I believe that the market will probably continue to find buyers underneath, as we have been rallying for some time, but expect a lot of volatility. As you can see, we had a bullish flag form and then breakout, but it has been very choppy in general as the headlines continue to knock the markets around as the worlds traders try to get a handle on risk. Remember, this is a pair that tends to move on risk appetite, and if risk appetite picks up, it could go higher. Alternately, it is also going higher due to a lot of the concerns out of Washington DC, which has been weighing upon the US dollar.

Commodities

The commodity space of course has a lot of influence on the New Zealand dollar, and the New Zealand dollar continues to be a bit of a barometer on the attitude of futures markets. If the market can break above the 0.6950 level, we could go much higher. I would expect the market to go testing the 0.70 level after that as it is the next large, round, psychologically significant number. It is also a historically important figure as well, so I believe that given enough time we will test that area. Alternately, if we break down below the 0.69 handle, the market will probably continue to fall. I think the one thing you can count on is a lot of noise, so therefore it can be very difficult to trade the New Zealand dollar. Smaller positions might be warranted.
Eracash.com - The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.

All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. Eracash.com bears no responsibility for any trading losses you might incur as a result of using any data within the Eracash.com