NZD/USD Price Forecast January 9, 2018, Technical Analysis

The Australian dollar has gone back and forth during the trading session on Monday, as we cannot pick up substantial momentum during the trading session. The 0.72 level seems to be offering a bit of resistance, but at the same time we aren’t exactly selling off. The market has been consolidating between the 0.68 level on the bottom, and the 0.75 level on the top. Because of this, if we pull back I think it will offer value as the market is trying to reach to the upside.

In the meantime, I believe in adding slowly to the upside, especially if the commodity markets rally as the New Zealand dollar is so sensitive to the overall attitude of those sectors. Volatility is probably something that you can expect, as the New Zealand dollar is the least liquid of major currencies around the world. A lot of what we have seen in the New Zealand dollar has been due to an anti-US dollar bias to the markets, and with the New Zealand dollar being the “riskiest” of the major currencies. In fact, you can extend gains by going long of this market when it is a negative dollar bias type of trading session. As the US dollar has gained a bit against many of its competitors in the Forex base, and makes sense that this pair hasn’t been able to fall. I see support at the 0.71 handle, and most certainly at the 0.70 level. Selling isn’t something I’m interested in doing right now.

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