NZD/USD Forecast July 10, 2017, Technical Analysis

The New Zealand dollar went sideways during the day on Friday, which is indicative as to what we have seen all week. The jobs number in the United States course was strong, but the RBNZ continues to be neutral, as a lot of headwinds are causing problems in the New Zealand economy. Ultimately, I think that this market is still going to be highly driven by risk appetite, and that being the case it’s likely that we will see a strong correlation between this market and stock markets around the world, not to mention commodity markets as this tends to be a bit of a barometer for the overall attitude of commodities. Pullbacks could happen here, but I suspect that we will see a significant amount of support at the 0.7250 level.
Buying dips
I think if we can stay above the 0.72 level, I’m going to remain a buyer of dips, as it offers value. We could be in a bit of an accumulation phase, but with a massive resistance above you should keep an idea as to how difficult it is going to be to break out. Once we do break above the 0.7350 level, then the market can go much higher. Until then, short-term buying on value propositions will probably be the best way to play this market as it has been all but dad as of late. Recently, we had seen an impulsive moved to the upside, so a little bit of a cooling-off phase may be what we are seeing. That makes perfect sense, as the market needs to catch his breath before continuing the move if it does indeed happen. I’m not interested in selling until we break down below the 0.72 level as it shows extreme weakness.