NZD/USD Price Forecast February 2, 2018, Technical Analysis

The New Zealand dollar has pulled back a little bit during the trading session on Thursday but bounced enough to show signs of resiliency yet again. I believe that the market is trying to go much higher, reaching towards the 0.74 level initially, and then the 0.75 handle. The 0.75 handle of course is the top of the larger consolidation area, so don’t be surprised to see the market struggle there. If we can break above there, that’s a very bullish sign and it should send this market much higher over the longer term, giving us a bit of a “buy-and-hold” opportunity towards the 0.7750 level, and then eventually the 0.80 level.

If we do back from here, I think there is more than enough support underneath to eventually lift this market, and that being the case it’s likely that the pullbacks offer value that people will take advantage of, as the US dollar has been beaten up a rather significantly. The NZD/USD pair tends to be a little bit more thin than other currency pairs involving the US dollar, especially the majors. Because of this, we could get a significant move, but I do think it will take a couple of attempts to finally break out to the upside and free ourselves of the consolidation we have been in for so long. Because of this, I don’t have any interest in shorting.