NZD/USD Price Forecast June 22, 2017, Technical Analysis

The New Zealand dollar was very volatile during the Wednesday session, falling initially, and then bouncing again to recoup all the losses. However, we fell from there again, testing the lows. I believe that the New Zealand dollar will continue to chop around, as there is a significant amount of noise in both directions. The 0.72 level underneath should continue to be a bit of a “floor”, and as a result I think that it’s only matter of time before the buyers return. I prefer buying, but also recognize that it is essentially a bit of “dead money” currently. Because of this, I will be looking for opportunities in other markets more than this one, but longer term impulsive signals of course will not be ignored, because quite frankly, that’s exactly what I need to see to get involved and put money to work.
Commodity markets
Commodity markets continue to be a major influence on the New Zealand dollar over the longer-term, and they of course are very mixed at the moment. I believe that eventually we could go looking for the 0.73 level above, and a break above there should send the market towards the 0.75 handle after that. Ultimately, the market breaking below the 0.72 level would be very negative, perhaps sending this market down to the 0.70 level after that. Given enough time, we will make an impulsive candle on the daily chart, and once we do I feel that will be the signal that needs to be taken in order to put any serious amount of money into the New Zealand dollar. I believe that the market will be very difficult between now and then, but once we do get that signal I feel that the next move will be very impulsive.