NZD/USD Forecast July 19, 2017, Technical Analysis

The New Zealand dollar had a very bullish session during the day on Tuesday, after initially falling drastically. We fell all the way down to the 0.7250 level, and then bounced rather rapidly and through the 0.7360 resistance barrier. It looks as if the New Zealand dollar is ready to continue going higher, and the 0.75 level above is the next target. The market looks likely to continue to find buyers on pullbacks, and that being the case it’s likely that the US dollar will continue to get beaten down. The market has been punishing the US dollar for lack of legislative prowess, and of course the bond markets themselves. The New Zealand dollar has a lot to do with commodities, and they of course have been rallying overall.
Pullbacks offer value
Pullbacks offer value in this market, so I believe that buyers will return. The market should continue to reach towards the aforementioned 0.75 level given enough time. But if we break above there, the market should then go to the 0.80 level. I believe that the market offers value on his dips and the natural selection of things will be the New Zealand dollar, as it gives more of an interest payment. This is a bit of a carry trade, and as the US dollar continues to fall, this makes the carry trade very likely to be attractive to traders. This is a simple carry trade move, and I believe that the buyers will continue to jump into the market.
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