NZD/USD Forecast September 27, 2017, Technical Analysis

The New Zealand dollar continued to fall during the Tuesday session, breaking below the 0.72 level. In fact, the market looks softer now than ever, and it’s likely that we will continue to drop. I think that the 0.71 level will be targeted next, followed shortly by the 0.70 level. The “risk off” attitude of the market could be a reason to propel this pair lower, so I would be very hesitant to buy this market, least not until we see a significant bounce and turn around in overall attitude. The New Zealand dollar is highly sensitive to risk, and I don’t see any reason to think that things are going to change in the near term. I believe that the market continues to see trouble ahead, and there is a general feeling of concern when it comes to the overall geopolitical situation.
The last couple of sessions have been very negative for the New Zealand dollar, and I think that will continue to be a problem. Ultimately, I believe that rallies will be sold, at least until we break above the 0.73 level, which seems a long way away suddenly. Because of this, I am willing to short this market, and add as we go lower. I think the 0.70 level will be massively supportive though, so breaking down below there might be a completely different story. In the meantime, I look at rallies with suspicion, especially considering the commodity markets aren’t exactly on fire while the US dollar has been strengthening overall. If we do break above the 0.73 level that would be a very bullish sign, and could send this market as high as the 0.74 level again, but I think markets are getting a bit exhausted from any type of bullish momentum, and therefore we should continue to see this malaise.