NZD/USD Price Forecast January 10, 2018, Technical Analysis

The 0.7150 level seems to be offering a bit of support in the NZD/USD pair, which has been very strong as of late. However, I also recognize that the markets are essentially consolidating in general, so I think that pullbacks will more than likely be an attempt to build up momentum to continue to the upside. The longer-term charts show consolidation between the 0.68 level on the bottom, and the 0.75 level on the top. Because of that, this is a market that will continue to be very much consolidating, but this is a larger and longer-term situation. I think that the market continues to be one that is “buy on the dips”, as we have not reached towards the top of the consolidation area since the bounce from the bottom.

I think that the New Zealand dollar had been a bit oversold for some time, so it makes sense that we recover and go back to normalcy. If we do break down from here, I would anticipate a significant support at the 0.71 handle, which has been significant resistance in the past, and the scene of a sizable gap from a couple of weeks ago. Ultimately, I believe that the US dollar continues to weaken, and that of course will be the same here as it is around the Forex world. Buying dips and adding on the way up to the 0.75 level aggressively is how I am trading the kiwi dollar.

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