NZD/USD Price Forecast December 19, 2017, Technical Analysis

The New Zealand dollar continues to be noisy during the trading session on Monday, following a small uptrend line that is forming a bit of an ascending triangle. I believe that the market is going to try to reach above the recent highs at the 0.7025 level, where we have seen significant resistance. I believe at this point, buying on the dips continues to be the way forward, and if that’s going to be the case, short-term charts will be used. If we can break above the 0.7025 handle, at that point I think that the market will probably go looking towards the 0.71 level and the short-term, as it is the next large, round, psychologically significant figure. However, if we were to break down below the 0.6980 level, at that point I think you may begin to see sellers jump back into the marketplace, punishing the New Zealand dollar again.

Remember that this pair is highly sensitive to risk appetite around the world, so pay attention to stock markets, commodity markets, and the like. Ultimately, this is a market that remains very volatile, especially considering the time of year that we are approaching. The market continues to be a bit thinner every day, and that could exacerbate some moves. The 0.70 region is a major landmark on the longer-term charts, so it’s possible that the noise could become much louder over the next several sessions. Currently though, it looks as if the buyers are trying to make their case heard.

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