NZD/USD Price Forecast November 22, 2017, Technical Analysis

The New Zealand dollar went sideways initially during the trading session on Tuesday, bouncing from the 0.68 level. However, although it looks as if we are forming a bit of a base, the reality is I think that the prudent trader will look for shorting opportunities on rallies, and on the first signs of exhaustion. The 0.69 level above should be massively resistive, and I think that eventually we will break down below the 0.68 level. A breakdown below there, the market should continue to go down to the 0.65 level, an area that is very important on longer-term charts. If we were to break above the 0.69 level, the market could then go to the 0.70 level above there, which is certainly much more important on longer-term charts and of course from psychological precedents as well.
The New Zealand dollar continues to be very sensitive to the commodity markets, so course we will have to pay attention to how most soft commodities are performing. If we do continue the volatility, that favors the US dollar anyway, because the bottle markets almost always favor safety, and out of the pair of currencies, the US dollar is certainly considered to be the “safer one.”
I’m simply waiting for signs of exhaustion to start shorting again, as not only do we have concerns and some of the commodity markets, but we also have spending concerns when it comes to New Zealand itself, and of course rising interest rates in the United States simultaneously. Because of this, I believe that there is much more downside potential than up, although we have certainly fallen quite far in a short amount of time, so that means perhaps we need to rally simply to build up enough momentum to break down through the massive support.