NZD/USD Forecast October 12, 2017, Technical Analysis

The New Zealand dollar continues to show choppiness as we move sideways in general, with the 0.71 level above being resistance, while the 0.7050 level. Ultimately, this is a market that I think continues to see a lot of volatility, as we are trying to figure out where to go next as far as risk appetite is concerned. Ultimately, if we can break above the 0.71 level, the market should continue to go higher, perhaps reaching towards the 0.72 level next, and then eventually the 0.75 level. Alternately, if we break down below the 0.7050 level, we should see even more support at the 0.70 level. That is a massive level on the longer-term charts, and therefore if we break down below there, the market should continue to go towards the 0.68 level.
I think that a break above the 0.71 level although bullish, still has a lot to work through to get to the higher levels. Eventually, I think that the 0.75 level will be the target, and therefore I think that we need to wait to see where we go next. The FOMC Meeting Minutes of course will have an influence, which gives us an idea as to where the US dollar goes longer term. That obviously is the other side of this pair, and that of course has a lot to do with where we go next. Ultimately, this market is highly risk sensitive, so we’ll have to wait and see what happens with the overall geopolitical situation, and of course the risk appetite of traders in general. If they continue to look for more return, it’s likely that the New Zealand dollar will continue back to the upside. In the meantime, I’m not interested in trading this market before clarity comes.