NZD/USD Price Forecast January 29, 2018, Technical Analysis

The New Zealand dollar has been very noisy during the trading session on Friday, as I think the volume would have been a bit thin. There would be a lot of position squaring ahead of the weekend, and of course markets were volatile in general around the world, and that of course has an influence on the kiwi dollar itself. I think that the markets continue to be volatile, but certainly have a lot of buying pressure underneath. The US dollar continues to weaken overall, and of course that will help the New Zealand dollar going forward.

If commodity markets can rally a bit, that should also help the New Zealand dollar, and perhaps push us towards the 0.75 level above. That is the top of the overall consolidation area, and a break above there would free the NZD/USD pair to go much higher. Once we break above there, I anticipate that the market should then go to the 0.7750 level. I like pullbacks as well, as the 0.73 level underneath is going to be support, and a breakdown below there should send this market looking towards the 0.72 level which of course has been important in the past.

I have no interest in shorting this pair, I believe that the US dollar has already shown that is going to be weak this year, and the New Zealand dollar should benefit from this, especially if the soft US dollar lifts commodity markets, as there should be plenty of influence on this market.