NZD/USD Forecast June 13, 2017, Technical Analysis

The NZD/USD pair initially fell on Monday, breaking down to the 0.7170 level below. However, we found enough support in the general vicinity to turn the market around and send it through the 0.72 handle later. I believe that the market is going to continue the uptrend, but there is going to be a bit of resistance between current levels and the 0.7225 handle. A break above there should send the market towards the 0.7250 level next, and then I believe longer-term towards the 0.75 handle if you are patient enough to hang on to the trade. Short-term pullbacks should offer value the traders will be willing to take advantage of, especially if the market can stay above the 0.72 level underneath, which is a large, round, psychologically significant number. On top of that, it is a market that represents the overall risk appetite of the world, as it is so sensitive to the commodity markets and of course risk appetites overall.
Buying dips
I continue to believe that the New Zealand dollar is a currency that you can buy on dips, but obviously there is going to be a certain amount of volatility and choppiness. I think that the market will eventually reach the 0.75 handle, but it will take quite a bit of time to get there. After all, we have already had an impulsive move happen, and now we are simply grinding sideways, perhaps trying to build up enough momentum to continue the impulsive move higher, as markets don’t move in one direction forever. I do not have any interest in shorting this market, because I believe that there is also a certain amount of support at the 0.7150 level underneath as well. Although the moving averages are starting to go sideways, I believe that eventually everything will turn to the upside, and offer value in the kiwi dollar.