NZD/USD Forecast June 7, 2017, Technical Analysis

The NZD/USD pair rallied during the day on Tuesday, breaking above the 0.7150 level handily. Now that we are above there, looks as if the New Zealand dollar is continuing to find buyers on dips. It now looks as if a pullback is probably an opportunity to pick up value. The market looks likely to reach towards the 0.72 level above, and then possibly even the 0.75 level after that. As a look at the chart, I recognize that there is a lot of support near the 0.71 handle below, and I look at that as the “floor” in the short-term uptrend. I also recognize that the market continues to react to commodity space reactions, and the New Zealand dollar tends to be a bit of a “barometer” to the overall attitude of futures trading. Keep an eye on the commodity space, because it does tend to lead the way.
Buying dips
Buying dips going forward is a nice strategy for what’s going on now in the kiwi dollar, and I believe that selling is all but impossible until we break down below the 0.71 level underneath. If we do, the market should reach towards the 0.7050 level below which of course had been supportive in the past, and then most certainly the 0.70 level after that. Either way, the market continues to be volatile but I think that the moving averages that have been so reliable recently, especially the 48-hour moving average colored in green, should continue to offer buying opportunities. The market looks very likely to remain volatile, but the recent impulsivity tells me that the buyers are starting to grow more confident going forward, and I believe that the dips will simply offer value that people are looking to take advantage of.