NZD/USD Forecast June 2, 2017, Technical Analysis

The New Zealand dollar fell during the day on Thursday, testing the 0.7050 level. The market has been very choppy, but I believe that the New Zealand dollar will continue to outperform its cousin, the Australian dollar. That’s not to say that it’s going to be a positive market, I do not think that at all, but that it will be a bit more resilient. I believe that the market will probably go looking for the 0.70 level underneath as it represents a nice large number, but with the job number coming out of the United States during the day on Friday, it’s likely that we will get a lot of noise. The market will see a significant amount of resistance at the 0.71 handle above, so even if we rally I think it will be short-lived, as not only that area looks resistive, but when you look at this chart from a higher level, it appears that we are trying to form some type of channel.
Today could be dangerous
The NZD/USD pair could be a bit difficult to deal with today, as it is the least liquid of the major currency pairs, and during a jobs announcement it could move quite violently. Because of this, you would not be blamed if you chose to stay away from this pair, because quite frankly you can get hurt rather quickly if you weren’t careful. I would say that if we can break down below the 0.70 level, the market would breakdown rather significantly. That could be a nice longer-term signal, otherwise we will probably continue the back and forth with a slow upward grind that we have had for some time now. The market continues to be choppy, but should continue to offer plenty of opportunity.