NZD/USD Price Forecast November 16, 2017, Technical Analysis

The New Zealand dollar was very volatile during the trading session on Wednesday, breaking above the 0.69 level for a moment, but turned around to break down significantly. At this point, I believe that rallies continue to be sold, as the New Zealand dollar is highly sensitive to risk, and given enough time I think that the commodity markets in stock markets are looking likely to roll over a bit. As we are in a bit of a “risk off” feel, I believe that the market should continue to punish the New Zealand dollar but the reprieve that we had seen early in the day makes a lot of sense, we had gotten a bit ahead of ourselves. At this point, I anticipate that the market will probably go looking towards the 0.68 handle underneath, and continue the overall downward trend.
The 0.68 level is rather supportive though, and I think it will take several attempts to get below there and continue to fall. We have seen so much volatility in the Forex market over the last 24 hours, it would not surprise me to see a bit of stability return to this pair, and may be more of a slow drift lower is in the cards. If we were to break above the 0.6925 handle, at that point I would be convinced that we are turning around and trying to go to the 0.70 level above. However, that seems to be very unlikely given the stringent repudiation of the 0.69 level by the sellers, and therefore I think that we are going to continue to see choppy volatility with the downward bias in the Kiwi dollar. If we were to break down below the 0.68 handle, I would add to an already short position.