NZD/USD Price Forecast January 12, 2018, Technical Analysis

The New Zealand dollar initially dipped during the trading session on Thursday, but found enough buying pressure to turn the market higher and likely to reach towards the top of the overall consolidation area from the longer term. The 0.75 level above is the top of a longer-term consolidation area, and I think that the market will be attracted to that level. Ultimately, I think that pullbacks continue to offer buying opportunities, with the 0.68 level being the bottom of that consolidation. I think that there are a lot of opportunities in this market, as the New Zealand dollar is so highly sensitive to risk appetite. Remember, commodity markets have a great influence on the kiwi dollar, as when they go up people tend to buy the kiwi itself. The opposite of course is true, so I think that paying attention to the CRB Index and other such markets might be the best way to go.

In general, there is a negative bias towards the US dollar overall, so I think that this market will probably gain simply because of that. The marketplace should continue to go hunting towards the 0.75 level, but if we can break above there, the market should go much higher, perhaps reaching towards the 0.80 level over the longer term. Market participants should wait for short-term pullbacks in the market that offer value that you can take advantage of. Think of the kiwi dollar as being “on sale.”

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