NZD/USD Price Forecast January 3, 2018, Technical Analysis

The New Zealand dollar initially fell during the trading session on Tuesday, and as you can see there is plenty of positivity to the market over the last several sessions. I have the 24-hour exponential moving average in red on the chart, as well as the 72-hour exponential moving average and green. It is obvious to me that although the moving averages are starting to move a little closer to each other, they are both very bullish currently. I think that the market should then go to the 0.72 handle next, with the 0.70 level underneath being massive support based upon the psychology of the number.

The US dollar of course will be sensitive to the jobs number coming out in a few sessions, but I think that the New Zealand dollar is going to continue to the upside, if for no other reason than to reach towards the top of the consolidation between 0.68 and 0.75 above. Because of this, I think that short-term pullbacks are buying opportunities, giving us an opportunity to pick up value on the occasion. I think it will be volatile, but if we get some type of bullish pressure and the commodity markets, that will only strengthen the uptrend as the New Zealand dollar is so sensitive to the overall attitude. I think we are starting to see an anti-US dollar bias in the Forex markets again, and that should help this market rally.

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