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

The New Zealand dollar pulled back slightly during the trading session on Thursday, but then rally towards the 0.70 level again. This is an area that continues to be interesting for the markets, as it is a large, round, psychologically significant number, and beyond that there is an uptrend line on the weekly chart that we have recently broken down below, and now we are testing the underneath of that line. Because of this, I suspect that we have a downward proclivity, but it is not until we break down below the 0.6970 level that the market should continue to go much lower. Alternately, if we were to break above the 0.71 handle, the market should continue to go to the upside. At that point, I think we would go to the 0.75 level over the longer term, as it is the top of the overall consolidated range that we have been in.

The market continues to be very noisy, and with the lack of volume during this time year will make this market even more so over the next couple of sessions. I do favor the downside, but I also recognize that we need to see some type of impulsive move lower to start putting money to work. On the other hand, we could return to the 0.75 handle, but I suspect it’s going to take a lot more effort to do that. Ultimately, I think it’s probably best to sit on the sidelines in the short term.

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