NZD/USD Price Forecast January 30, 2018, Technical Analysis

The New Zealand dollar has gone back and forth during the trading session on Monday, testing the 0.7350 level. The market is starting to roll over based upon the 72-hour moving average, which is the 3-day moving average. The market looks as if it is trying to reach down towards the 0.73 level, perhaps even the 0.7250 level below there. I think there is a lot of noise underneath, and I do think that eventually we will find buyers, as the market has so much in the way of noise underneath, there must be a ton of buying orders. There is a lot of noise just above though, and that something to think about.

Above the 0.74 level, there is a significant amount of resistance going up to the 0.75 level, which has been the top of the longer-term consolidation, and if we can break above there it’s likely that we will be able to go much higher. If we can break above there, then we go towards the 0.7750 level. If we break down below the 0.7250 level, the market could drop down to the 0.70 level, which of course has a lot of psychological and structural importance longer term. Keep in mind that this pair tends to be very risk sensitive when it comes to momentum, and of course tends to follow the commodity markets overall. Pay attention to the CRB Index, it’s an index that I have found to be useful predicting movement in the kiwi dollar.