NZD/USD Price Forecast January 11, 2018, Technical Analysis

The New Zealand dollar has rallied significantly during the trading session, but pulled back a bit to show signs of exhaustion. I believe that the market underneath has plenty of support as well, and then eventually we should find plenty of people willing to get involved to push the New Zealand dollar to the top of the overall consolidated area, the 0.75 handle. Longer-term, this is an area that has been a magnet for price, but has also been far too strong to break out above.

I believe that this market will continue to be noisy, but that’s nothing new as the New Zealand dollar is the least liquid of the major currencies. I think that you should pay attention to commodity markets in general, as they give us a general idea as to the risk appetite, which of course then has a significant effect on the kiwi dollar. Beyond that, the US dollar is also part of the equation, so if the US dollar starts to soften against other currencies, that will show itself in this pair as well. I believe that the 0.71 level underneath is supportive, and that is followed by even more support at the large, round, number 0.70 below. I suspect that this is going to be very noisy market, but adding slowly as you pull back a bit, the market allows you to build a larger position towards the upside.

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