NZD/USD Price Forecast February 1, 2018, Technical Analysis

The New Zealand dollar has exploded to the upside on Wednesday, showing signs of strength yet again. The US dollar looks soft overall, and with the New Zealand dollar being one of the least liquid of the Major pairs and makes sense that we get a significant move. I think that there is plenty of support below at the 0.7350 level, and that of course the 0.73 level under there. Pullbacks offer value, and I think eventually we will break out to a fresh, new high and go looking towards the 0.75 level, which is the top of an overall consolidation area that the market has been stuck in for some time.

If we do break above the 0.75 level, and I don’t think that happens before the jobs number comes out, we are free to go to the 0.80 level. It is very likely that the Australian dollar will need to explode and break above the resistance that it is facing as well, as the pairs tend to move in unison. If that happens, the New Zealand dollar could be the big winner, just because of the lack of volume at times.

Pullbacks at this point should find plenty of interest, and I think it’s only a matter of time before we get buyers dipping in to the market due to value, and the falling of the US dollar has continued to be a driver as well. This is a one-way trade from what I see, but you may be able to get better pricing if you are patient enough.

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