NZD/USD Price Forecast January 5, 2018, Technical Analysis

The New Zealand dollar has been very bullish of the last couple of weeks, and at this point it looks as if we are ready to go towards the top of the overall consolidation area, which could mean an extension to the 0.75 handle above. That area should be massively resistive, so if we break above there and could send this market much higher, perhaps to the 0.80 level above. Ultimately, every time we pull back, I believe that the buyers will return to this market, but it might be rather choppy as today is the Nonfarm Payroll Announcement. Overall, commodity markets have a massive amount of influence on the New Zealand dollar as well, as we have seen more than enough trouble in the greenback to perhaps push this market to the upside as well. I suspect there are a lot of reasons to think that this market will be difficult to trade, so at this point I’m willing to get involved, but only in small bits. By adding as the market works out in my favor, I’m hoping to build up a large position before the market breaks above the 0.75 handle.

However, if we were to break down below the 0.70 handle, the market should then go to the 0.68 level underneath which is the bottom of the overall consolidation area, and what I think is the “floor” underneath the New Zealand dollar overall. It will be noisy, but having said that it should give us plenty of opportunity.

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