NZD/USD Forecast June 8, 2017, Technical Analysis

The New Zealand dollar initially dipped on Wednesday, but found enough support at the 24-exponential moving average on the hourly chart to turn things around and go higher again. It looks as if are going to press against the 0.72 level above, and a break above there seems all but a done deal. I move above there has be buying yet again, just as a dip what as long as we can stay above the lows of the day for Wednesday. I believe that the New Zealand dollar will continue to climb if the commodity markets can stabilize and continue to show underlying strength. While there is no particular commodity market that I look to for trading the New Zealand dollar, I look at the overall commodity markets. One way to look at this could be the CRB, a very popular ETF out of the United States which follows commodity is on the whole.
Buying dips
Even if we do breakdown below the lows of the session on Wednesday, I believe that buying the dips still is the best way to play this market. I also recognize that the 0.7150 level should be supportive, and most certainly the 0.71 handle. Because of this, I believe it’s only a matter of time before the buyers get involved and therefore I think at this point in time it is a market that cannot be sold, and that every time we pull back you should be thinking about value as it is presented itself.
Having said all of that, I am bullish but recognize we could get volatility occasionally. I look at those volatile moves as opportunity in a market that looks very bullish overall, and therefore will be looking to sell anytime soon as the New Zealand dollar has looked so strong.