NZD/USD Forecast May 30, 2017, Technical Analysis

The New Zealand dollar initially tried to rally during the day on Monday, and even broke out at one point. However, we turned around and sold off so I think that the market is going to continue to be very choppy going forward. However, it’s difficult to sell this pair until we break down below the 0.7040 level, an area that has offered a significant amount of support. A breakdown below that level would have me shorting this pair and reaching towards the 0.70 level under that. If we bounce from there, that’s just a simple pullback to support that has proven itself yet again. That being the case, I believe that the market would go looking for the 0.71 level above. Either way, this pair is going to be volatile as we have no idea what risk appetite is going to be like going forward, and that is highly influential when it comes to the Kiwi dollar.
Most recent uptrend
I believe that the most recent uptrend has been very choppy to say the least, so having said that I think that although we are going higher, it is going to be very difficult and choppy to say the least. With this being the case, it’s likely to be a situation where small positions are about all you can get involved in. I think that a break above the 0.71 level is extraordinarily bullish, and I would expect to see that happen as long as stock markets and commodity markets can do relatively well. If they can’t, then the market will break down to the 0.70 level as well. A breakdown below there sends this market even lower, reaching towards the 0.69 handle underneath. Either way, expect extraordinary volatility in this pair.