NZD/USD Forecast July 6, 2017, Technical Analysis

The New Zealand dollar went sideways initially during the session on Wednesday, then collapsed down to the 0.7250 level against the US dollar. The resulting bounce does look interesting, as the 0.7250 should start to see quite a bit of buying pressure, and the market returning towards the 0.73 level should be a very bullish sign as it would form a hammer on the daily chart. A break above the 0.73 level should send this market down to the 0.7350 level. Alternately, if we break down below the 0.7250 level, that would be a very negative sign. At that point, I would expect the market should then go to the 0.72 level, showing that the markets are showing 50 PIP increments as being the best way to trade this market.
Short-term trading
Short-term trading should continue to be the case going forward, as the New Zealand dollar does tend to be very choppy, and will move quicker than some other currencies against the US dollar, and both directions. I believe short-term traders will continue to start buying at lows, and selling at tops as we are a bit range bound. Currently, the commodity markets are not giving us clear signals, and with this being the case it’s likely that the markets will be choppy going forward. Ultimately, if we break out to the upside, I believe he eventually go to the 0.75 level which is massively resistive on the longer-term chart.
Volatility should continue as there are a lot of concerns coming around the world due to central bank tightening of monetary policy, which of course works against commodities. Alternately, I believe that the market will continue to have more question marks than anything else, and therefore I am not looking for massive moves anytime soon.