NZD/USD Forecast June 5, 2017, Technical Analysis

The NZD/USD pair skyrocketed during the session on Friday, as the jobs number in America came out less than stellar. Ultimately, the market does have more of an upward bias anyways, so it’s not a huge surprise that we rallied. A break above the 0.71 level was the first thing that happened during the day on Friday of significance, and you can see that on the hourly chart we have continued to hold above there. Because of this, I believe that the market continues to find buyers on dips, and we should then go to the 0.72 level above. Ultimately, this is a market that shows quite a bit of resiliency, and I think that since it is the least liquid of the Major pairs, it’s likely that the market will have exaggerated moves to the upside. After all, the market should then find plenty of buyers willing to get into the market that may have missed this move.
Buying dips
I believe that buying dips will continue to be the way going forward, and I also believe that the 0.71 level should offer quite a bit of support. Because of that, I am looking at this is a market that is willing to offer value, and the value of course makes it impossible to short this market with any type of confidence in the near term. I believe that the market will continue to be volatile, but if you are patient enough and of course have a certain amount of wherewithal, you will find that this market offers quite a bit of opportunity going forward. As I said previously, I would only want to buy this market, but that does change if we break down below the 0.7050 level, as it would show a complete reversal.