NZD/USD Forecast November 7, 2017, Technical Analysis

The New Zealand dollar has drifted a bit lower at the open on Monday, but then turned around to show signs of life as we bounced back to the 24-hour exponential moving average. I think we could roll over a bit from here, and then perhaps go looking towards the 0.6825 handle again. Alternately, if we break to the upside I think that the next selling opportunity will present itself near the 0.70 level. That’s an area that has a lot of structural importance and psychological importance built in, so therefore I would not be surprised at all to see sellers jump back in in that region. Keep in mind that the New Zealand dollar tends to be highly sensitive to risk appetite, something that I would not be surprised to see rollover as the situation in Saudi Arabia has a lot of traders concerned, especially in the commodity markets.
Overall, I believe that the market probably goes down to the 0.68 level, and a breakdown below there could send this market even lower, perhaps the 0.65 level after that. If we were to somehow break above the 0.70 level, I see resistance at 0.7 to as well, so that could be a short-term target for those who are quick enough to buy the pair. Overall, this is a market that continues to be volatile, but that’s nothing new for New Zealand dollar traders. In general, I think the volatility continues to be an issue, but ultimately this is a market that continues to show lots of opportunity for the short-term trader. I do favor the downside though, because quite frankly the US dollar will continue to have significant demand due to the likelihood of interest rate hikes over the next several months.