NZD/USD Forecast July 12, 2017, Technical Analysis

The New Zealand dollar had a rough session on Tuesday, as we fell through the 0.7250 level, and then fell to the 0.72 level which of course is supportive as it has been in the past and is a large, round, psychologically significant number. The New Zealand dollar is struggling overall, and quite frankly looks a little bit rudderless. Because of this, I think that rallies will probably continue to find sellers, and a breakdown below the 0.72 level most certainly will. With that in mind, I believe that the markets are looking for some type of impulsive move, and we may have gotten it early during the day on Tuesday. Over the last several weeks, we have been grinding sideways in both the New Zealand dollar and the Australian dollar, and I think that will build up a significant amount of momentum. The question is now when can we release that momentum?
Not interested in buying
I’m not interest in buying currently, because of the volatility and the overall attitude of the market. I think that the New Zealand dollar is going to suffer as it is considered to be a “risky” currency, and of course there are a lot of concerns out there. Even if we do rally from here, I think there is a significant amount of resistance near the 0.7250 level, and of course just above there as well. Because of this, I believe that we will either get a “sell the rallies” move, or we will get a breakdown that we can take advantage of. Otherwise, I’m probably on the sidelines as I have been for several days. There are much easier markets out there to be bothered with trying to make sense of this noisy marketplace.
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