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

The New Zealand dollar has a significant amount of support at the 0.69 level underneath, and therefore I think it will be a fight to get through there. I am still bearish of the New Zealand dollar though, because I believe that until we break above the 0.70 level, we are still very low in the overall consolidated move, and let us not forget that we had recently pulled back to the 100% Fibonacci retracement level from the previous rally. With the Federal Reserve having an interest rate statement coming out during the trading session today, it will be interesting to see how the market reacts to that statement. If it is a bit more dovish than anticipated, that will send the New Zealand dollar higher.
However, New Zealand has its own issues, so if the Federal Reserve sounds more hawkish than anticipated, that should send this market looking down to the 0.69 level, and perhaps even breaking down below there. If we break down below that level, then I think the market goes down to the 0.68 handle below which has been massive support. If we break down below there, then the bottom has just fallen out of the New Zealand dollar, and we can go much lower, perhaps as low as the 0.6350 level over the longer term. While I don’t know that’s going to happen today, I still favor the downside as a stronger than anticipated CPI number has killed over half of the rally that we had seen previously during the Tuesday session.

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