NZD/USD Forecast June 21, 2017, Technical Analysis

The New Zealand dollar had a volatile session on Tuesday, as we rallied, reaching towards the 0.7270 level. Ultimately, the market should continue to find quite a bit of noise, and the fact that the buyers returned suggests to me that it’s only matter of time before we continue to grind to the upside. We are starting to see the market tighten up, so I think that it’s only matter of time before we get some type of impulsive move. In the short-term, it’s going to be difficult to buy this market, but it will be different call to sell as well. I think given enough time, the New Zealand dollar will more than likely offer some type of impulsive move, but until we get it, it can be difficult to place any money into the marketplace. The market continues to look very dicey, but once we get the important move, I think that it will be easy to tell, and we should follow.

Range bound trading?

I believe that the range bound market should continue, with the 0.72 level underneath offering the bottom, while the 0.73 level above. Ultimately, a break above the top of that level should send this market even higher, and towards a longer-term target of 0.75 above. Ultimately, if we breakdown below the 0.72 handle, the market should then go down to the 0.70 level after that. Either way, the market will more than likely follow what happens as far as the risk appetite around the world is concerned, especially in commodity markets. With this, pay attention to the overall attitude shown by traders globally, and more importantly the New Zealand interest rate statement, and more importantly the attitude of the announcement. If it sounds hawkish, that might be what we need to see the market go higher.