NZD/USD Price Forecast February 8, 2018, Technical Analysis

The New Zealand dollar has fallen during the trading session on Tuesday, reaching towards the 0.7275 handle. This market has a bit of support just underneath though, so I think it’s only a matter of time before we will find buyers. If we do break down below the 0.7250 level, the market probably goes down to the 0.72 handle, followed by the 0.70 level which is much more structurally important. Recently, markets have been very choppy and there’s been more of a “risk off” 5, so that has been working against the Kiwi dollar.

If we do bounce from here, I would expect to see resistance near the 0.7350 level, an area that is previous resistance from just a day ago. I think that if we can break above there, the market then goes looking towards the 0.74 level. I would expect a lot of choppiness in this market, but if we can finally get above the 0.75 handle, the market then breaks out and becomes more of a “buy-and-hold” scenario. We have a lot of work to get there at this point, so in the meantime I believe that we are looking for momentum to be built up so that we can make the move higher. If we break down, then the market will probably fall rapidly, but I think that there are plenty of buyers underneath. Pay attention to the US bond markets, because if interest rates continue to rise, that may be enough to send the market much lower over here. Currently, that’s the biggest risk to New Zealand dollar longs.

Economic Calendar