NZD/USD Forecast October 31, 2017, Technical Analysis

The New Zealand dollar continues to be volatile, bouncing around near the 0.6850 level. This is an area that should continue to be noisy, as I believe there is quite a bit of concern when it comes to the kiwi dollar right now. Keep in mind that the New Zealand dollar is struggling due to the election of Labour, meaning that traders are concerned about excess spending. Because of this, I think that even though we are forming some type of basing pattern on the hourly chart, I think it’s only a matter of time before the sellers get involved. I’m especially interested in the 0.70 level, as it has a massive amount of psychological and structural importance. If we can find some type of exhaustion near that level, I’d be more than willing to start selling rapidly. I believe that the Federal Reserve raising interest rates will continue to lift and support the US dollar, while New Zealand has far too many questions.
If we were to break down below the 0.68 level, that would be a very bearish sign, sending this market down to the 0.65 level underneath. Ultimately, I believe that the market should continue to be noisy, but I believe in selling rallies. If we were to break above the 0.7050 level, then I must reconsider everything but right now it looks as if the sellers are firmly in control of the kiwi dollar. We may be a bit overextended to the downside right now, so quite frankly a bounce makes sense as it gives us an opportunity to pick up “value” in the US dollar. The market should continue to be noisy, as the New Zealand dollar tends to be less liquid than the other major currencies.