NZD/USD Forecast June 29, 2017, Technical Analysis

The New Zealand dollar initially tried to rally during the day on Wednesday, but found the 0.73 level to be a bit resistive. We fell from there, and made a lower low for the session, and then bounced from the 0.7250 level. We did break above the 0.73 level, and now are starting to pull back again. Given enough time, I think we are going to continue to try to break out to the upside, and a fresh high that would clear the top of the daily candle for Tuesday would be a very bullish sign, and I think send this market looking for the 0.75 level. However, there are a lot of concerns when it comes to growth globally, and we are getting mixed messages from central banks around the world. That should continue to cause volatility to be very extreme, but I believe that pullbacks are probably better buying opportunities than rallies being selling opportunities. You can see clearly from what has happened over the course of the last 48 hours as to how volatile the New Zealand dollar is, as it is very sensitive.
Choppiness ahead
No matter what happens, I believe there is a lot of choppiness ahead, and that being the case it’s likely that you are better off trading smaller pieces of a position so that you can add and continue to benefit from the volatility. Once we break out to the upside, it’s likely that the market could go to the 0.75 handle which would be a much more substantial barrier. A break above there would send this market to much higher levels, perhaps to the 0.80 level above, which has been very important. The 0.7750 level between here and there could be a nice buying opportunity as well, if we can break above there.