NZD/USD Price Forecast December 15, 2017, Technical Analysis

The New Zealand dollar fell significantly during the trading session on Thursday, but it looks as if it is starting to find support just below the psychologically important 0.70 level. A move above that level is a very bullish sign, and I think that we will then go looking towards the upside, perhaps trying to reach as high as the 0.75 level longer-term, as it is the top of the longer-term consolidation area. However, if we were to roll over from here and continue to go lower, I think a break below the 0.69 level would be very disastrous for the New Zealand dollar. Expect volatility, that’s typically the case with the New Zealand dollar anyway, so keep that in mind.

Starting out with a small position and then adding slowly might be the best way to deal with the New Zealand dollar over the next several days, and especially as we get closer to the holidays with liquidity becoming an issue. That issue is likely to be a major problem later on, but right now it certainly looks as if the upside is favored. If we were to break above the 0.75 handle, that becomes a longer-term investment just waiting to happen. A lot of pundits are suggesting that the commodity space is an area that you should be looking towards in 2018, and of course the New Zealand dollar would benefit from that move. Because of this, I’m keeping a close eye on this pair as it looks like it is trying to rebound from the massive negativity it had seen recently.

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