NZD/USD Price Forecast November 13, 2017, Technical Analysis

The New Zealand dollar was very noisy during the trading session on Friday, as we continue to see a lot of noise in this market. I believe that the 0.69 level underneath is reasonably supportive, but I also believe it would not be a huge surprise to see this market break down through there. The US dollar has been strengthening overall, although the last couple of days have been a little less stellar, and the New Zealand dollar has been very negative and as of late. I believe that the downward momentum should pick up again, and I also recognize that there is a significant ceiling in this market at the 0.70 level above. It’s not until you break above there that the market is one that I’m interested in buying. I believe that the overall risk appetite of traders out there is starting to wane a bit, and that of course will hurt the kiwi dollar as it is so heavily laden to the commodity markets.
I believe that the market will continue to be very choppy, that’s to be expected in this pair, but I still believe in selling rallies that show signs of exhaustion, and of course selling breakdowns. If we were to break above the 0.70 level, then I would adjust my thinking, perhaps expecting a move to the 0.72 level at that point. However, I think that’s less likely to happen after the recent meltdown due to the elections in New Zealand. I think that if the US Congress can get it together on tax reform, that might be enough to send this market down to the 0.68 handle, and that’s something that may happen over the weekend, you never know. In the meantime, I preferred error on the side of caution and sell.