NZD/USD Forecast June 16, 2017, Technical Analysis

The New Zealand dollar broke down during the day on Thursday, slicing into the 0.72 level as traders come to grips with the idea that the Federal Reserve might be more hawkish than anticipated. However, this is an area where I would expect to see buyer step into this market, as it has been resistive and supportive in the past. If we can bounce above the 0.7240 level, I would be a buyer. In the meantime, I think that the market will probably continue to chop around, as we try to build up the momentum and the support of course to go long. Ultimately, if we can break down below the 0.7160 level, that would be a very negative sign, and at that point I think the market would go fishing for the 0.70 level underneath.
On hold
I believe that this market should be on hold for a while, and therefore I’m willing to stand on the sidelines until we get some type of breakout or breakdown. The market will course be noisy, the New Zealand dollar typically is, but paying attention to commodities can as they could give us a directionality as well. If the commodity markets rally, that could offer a little bit of help and hope to the Kiwi dollar. On the other side of that equation, if the commodity markets fall apart, that will be negative on the New Zealand dollars well.
I recognize that the 0.73 level above should be resistance, but if we break towards that direction it should be a continuation of the longer-term uptrend that we have been trying to form over the last several weeks. Expect noise, but be patient, there is plenty of room for this market to move if you allow it to present the trading opportunity.