NZD/USD Price Forecast December 29, 2017, Technical Analysis

The New Zealand dollar rallied a bit during the session on Thursday, and a relatively thin environment. Looking at the chart, it looks likely that the New Zealand dollar will continue to go higher, as the US dollar in general looks very susceptible to trouble. I believe that we are going to go towards the top of the overall consolidated area which measures for a move towards the 0.75 handle. That is the top of the overall consolidation, so I think that given enough time we will probably continue to see this market stay in this area, but if we were to break above the 0.75 handle, that would be a very bullish longer-term move. I believe that the New Zealand dollar is benefiting from a week US dollar, not necessarily anything strong coming out of New Zealand. In fact, the biggest argument for the New Zealand dollar simply that it was oversold.

Remember that the New Zealand dollar is highly sensitive to the commodity markets, so if they are rallying during the day, typically the New Zealand dollar will fall as well. The market continues to see a lot of volatility, but I think in general you need to look at pullbacks as buying opportunities. It’s not until we break down below the 0.70 level that you need to worry about the upside. If that happens, the market probably goes down to the 0.68 level, which has been supportive in the past. Lots of volatility and little in the way of volume will be the main theme over the next several sessions.

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