NZD/USD Price Forecast January 19, 2018, Technical Analysis

The New Zealand dollar rallied during the day on Thursday, reaching towards the 0.7325 handle but pulled back. Ultimately, I think if we can break above that level, then the market goes to the 0.75 level above, which is the top of longer-term consolidation, and therefore it should be massively resistive. I think that if we were to break above there, the New Zealand dollar would explode to the upside but in the meantime, it’s very likely that we will continue to see short-term pullbacks. The marketplace has been very volatile, but keep in mind that the New Zealand dollar is the least liquid of the major currencies.

Ultimately, this market is one that will go with the overall risk appetite of the markets, thereby if commodities and stock markets rally, this market should continue to go higher. Obviously, it works in both directions, so I think that eventually we will get some directionality based upon the overall markets. If we do break above the 0.75 level, the market more than likely will go looking towards the 0.7750 level. The market is probably best to be bought on slight dips, adding as it works out in your favor. In general, I suspect that this is a bullish trend is ready to continue, but I believe that over the longer term, we should see plenty of opportunities to get involved. Markets in general have been a bit skittish as of late, so it makes sense that buying a risk based currency such as the New Zealand dollar should be done in chunks, not all at once.