NZD/USD Price Forecast January 17, 2018, Technical Analysis

The New Zealand dollar has drifted a bit lower during the trading session on Tuesday, as traders came back from the holiday. The 0.7250 level seems to be offering a slight bit of support, and considering that we are in a longer-term uptrend, it makes sense that people will be looking to take advantage of this as value, and serve buying the New Zealand dollar as it is cheaper than it was 24 hours ago. I think eventually we go looking towards the top of the overall consolidation, which is the 0.75 handle. That’s not to say that we are going to get there right away, but I believe that these gentle pullbacks continue to offer value the people are willing to take advantage of, as profit-taking occurs.

Pay attention to commodity markets, they are always crucial when it comes to the New Zealand dollar, just as the general “anti-US dollar bias” moves this market to the upside. I suspect that there is significant support at the 0.72 level, as well as the crucial 0.70 level. Whether we can break above the 0.75 level or not, there is still plenty of room between here and there to take advantage of this trend, so this point simply reaching there should be a good enough indication or target, depending on how you look at the charts.

If we do break down, I will not be selling but would rather look for opportunities to get involved in a market that has shown itself to be so clear-cut.