NZD/USD Forecast May 22, 2017, Technical Analysis

The New Zealand dollar had an explosive session during the Friday session, breaking above the 0.69 handle. We are now pressing the 0.6950 level, which has been resistive. This has been the top of the range for the last several weeks, so if we can break above here it would of course be significant, and we could go looking for the 0.70 level above there. Once we break above there, then the market goes much higher. Until then, it’s likely that the market will remain very volatile, and choppy to say the least. The New Zealand dollar tends to be very sensitive to the risk appetite of markets, which are completely erratic at the moment. Because of this, I think the kiwi dollars going to be one of the more difficult currencies to trade, but I feel that more of a “risk on” feeling has come back into the market, so overall I believe that the buyers will be profitable.

Support below

Even though I think this would be a choppy and volatile market over the next several sessions, I believe that the 0.6880 level underneath is going to be massively supportive. I think that we will continue to see people willing to buy this market on dips, but I also recognize that there will be significant headwinds just above. With this being the case, the market should continue to offer plenty of trading opportunities for scalpers and with this being the case I think that short-term traders will continue to be attracted. Longer-term traders are going to continue to struggle to find any type of clear direction, so therefore it’s difficult to hang onto a trade for any real length of time, not to mention with any real size going forward.