NZD/USD Forecast June 14, 2017, Technical Analysis

The New Zealand dollar rose during the day on Tuesday, breaking out to a fresh, new high, bouncing off the 0.72 level for support. I believe that this market will continue to grind its way higher, and certainly has outperformed the Australian dollar, a currency that tends to follow right along. Because of this, I am a buyer on the dips and I believe that we will go to the next large, round, psychologically significant number over the longer-term, the 0.75 handle. However, keep in mind that the New Zealand dollar is extremely sensitive to commodity markets, so if they start to roll over, that will put downward pressure on the key we dollar itself. I believe that we have a significant amount of support not only of the 0.72 handle, but also the 0.71 handle under there.
Buying on the dips and hanging on
I have been buying the New Zealand dollar in small quantities recently, and will continue to do so, adding little bits in order to build up a massive position to the upside. By pyramiding, you can squeeze more profits out of a trade but also cut down a lot of your risk going forward. If we broke down below the 0.7050 level, I would become concerned, because it would be a major turnaround of momentum. However, the New Zealand dollar certainly has a lot of momentum as of late, and I don’t see that changing. In fact, the Tuesday session only seems to scream that we are about to get more. It is a little overbought in general, which is why I caution putting large-size to work right away. Be patient, the trend is your friend so to speak, and this is an excellent example of that old axiom.
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