NZD/USD Price Forecast February 15, 2018, Technical Analysis

The New Zealand dollar has been very noisy over the last 24 hours, as we have pulled back towards the 0.7250 level after the CPI numbers in the United States were higher than anticipated. However, we get past that shock to turn things around and rally significantly, reaching towards the 0.7350 level above. That is an area that has been resistance and support in the past, and I believe that we will continue to go higher over the longer term, especially if the rebound was to be believed during the trading session. With this reaction, I anticipate that short-term pullbacks are the best way to go going forward and offer value that a lot of traders out there will be more than willing to take advantage of.

I think that the 0.7250 level underneath should be a bit of a “floor” in the market, and I have a longer-term target of 0.75 above, which will attract a lot of attention. If we can finally break above that level, the market could continue to go much higher, and more of a buy-and-hold scenario. However, I recognize that there is a lot of work to get past the 0.7450 level initially, and that the entire region above there is going to be very difficult. Until then, it’s probably best to look at this as a market that offers value on pullbacks, but don’t reach for the stars on any trade that you find yourself in.

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