NZD/USD Forecast June 19, 2017, Technical Analysis

The New Zealand dollar shot higher during the day on Friday, reaching towards the 0.7250 level. We used the 0.72 level as support, and it appears that it has held quite firmly as it has several times in the past. Because of this, I believe that the market is more likely to go to the 0.73 level over the longer term, and the pullback should offer buying opportunities as the New Zealand dollar has been so strong over the last several months. Because of this, I am very bullish and I believe that eventually we will break above the 0.73 level and go looking for the 0.75 level longer term which of course has been my longer-term target if you’ve been reading my articles.
Buy on dips
I have been saying buy on dips for some time when it comes to the New Zealand dollar, as long as we can stay above the 0.72 level, I think that plenty of traders will be doing that. I think that reaching towards the 0.75 level will probably take some time, but this offers plenty of buying opportunities and therefore it’s nice to be able to take advantage of these in small increments and building up a larger position so that you can make truly strong profits and what has been essentially a range bound Forex market overall.
If we did breakdown below the 0.72 level for any sustained amount of time, we could go down to the 0.70 level but this is a least likely of my scenarios. I believe that a breakdown below there would be extraordinarily negative, perhaps sending the market down to the 0.68 handle. However, I would rate this as about a 20% chance right now, as I believe that the buyers are starting to become very aggressive.