NZD/USD Price Forecast January 24, 2018, Technical Analysis

The New Zealand dollar has initially fallen during the trading session on Tuesday but found enough support near the 0.73 level to bounce again. This is a market that is very choppy, and I think at this point we are trying to build up enough momentum to continue the move to the upside. It makes sense that we may struggle a bit, we have been grinding higher, and the US dollar can’t lose value forever. I suspect that the 0.7350 level will be broken to the upside, and then eventually we should go much higher, perhaps going to the 0.75 level.

If we break down below the 0.73 level, the market could go down to the 0.7250 level after that. Volatility will be a mainstay, but keep in mind that the New Zealand dollar is the least liquid of the major currencies, that makes for excellent trading opportunities will once we get some type of momentum. A break above the 0.7350 level should send this market towards the 0.74 level next, and then eventually the 0.75 handle. That is the top of the longer-term consolidation, going back over the course of the year.

If we do pull back from here, it’s likely that the market should have plenty of support, and I don’t have much in the way of interest when it comes to selling this market. The 0.7250 level is the first support level, followed by the 0.72 level. If stock markets rally, and more importantly commodity markets, this pair should go much higher as it is so sensitive to risk appetite.

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