NZD/USD Forecast October 9, 2017, Technical Analysis

The New Zealand dollar fell during Friday trading as the jobs number came out of America lower than anticipated. However, there has been a couple of hurricanes that of course have had a bit of influence, so I think the market is probably going to shrug those poor numbers off. I think that the New Zealand dollar is falling towards the 0.70 level, and that’s an area where we would see some type of psychological support due to the large, round, psychological number. I think that given enough time, we should then see this market reaching to the 0.71 level above, and a break above there could be bullish. However, I think that were going to have to test the 0.70 level underneath, because it is far too obvious of a target for the market to ignore.
Being patient will be necessary
I think that being patient will be necessary to get involved in this trade, unless of course you are a very short-term trader, and then you were to start selling. However, I think that it’s probably easier to start buying at a lower level that’s closer to the 0.70 level, and then perhaps holding on for the longer move. However, if we break down below the 0.70 level, then the market is probably going to unwind to the 0.68 level below there. I expect volatility regardless what happens, mainly because of the illiquid nature of the New Zealand dollar overall. Ultimately, I think that the market is going to be a bit difficult to deal with initially, but eventually we should see the necessary support to start putting money to work. I will be patiently awaiting a bit of a bottom to the recent selloff. Until then, I’m on the sidelines