NZD/USD Price Forecast February 6, 2018, Technical Analysis

The New Zealand dollar has initially tried to rally during the day on Monday but found enough resistance near the 0.7325 level to roll over and reach towards the 0.73 level again. This is an area that has been supportive, and I think at this point we are probably looking at a consolidated tone in general. I think that if we can rally from here, we will struggle to get above the 0.74 level, at least until the risk appetite of traders continues to go strong.

I believe that if we break down below the 0.7275 level should send this market down to the 0.72 level next. After that, the 0.70 level will be the next target. Alternately, if we did manage to break above the 0.74 level, I think at that point we would go looking towards the 0.75 level which is a large, round, psychologically significant number and would probably cause a lot of noise. A break above there has the New Zealand dollar in a “buy and hold” situation and offer plenty of longer-term opportunities as well. However, I think it’s going to be very difficult to do this, and I would anticipate it to happen in the short term. I think we get a lot of noise in the meantime, and I think that the average trader would be well advised to take profits quickly and what looks to be a very volatile situation. The market continues to act upon risk appetite.

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