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

The New Zealand dollar has been noisy on Thursday, but that’s nothing new. The pair is highly sensitive to risk appetite, and with that being the case it makes sense that the noise in the stock market continues to have a negative effect on this market. The US dollar has been strengthening over the last several sessions, and the New Zealand dollar is especially susceptible to those massive swings in attitude, as the New Zealand dollar is one of the least liquid of major currencies.

If we can break above the 0.7250 level, the market could start picking of volume, reaching towards the 0.7350 level. That would take a bit of a “risk on” move, and it’s likely that the market will probably continue to be a bit skittish, so even if we do rally from here, it’s likely that we will have short-term pullbacks. Because of this, I look at the New Zealand dollar as a market that I would prefer to buy, but I recognize that taking profits rather quickly is probably the way to go.

On the other hand, if we break down below the lows of the Thursday session, the market is probably going to go looking towards the next major level, the 0.70 level which should attract a lot of attention. In general, I think the US dollar rally has been a bit overdone, so we will have to see what happens next. Expect a lot of noise and keep your trade position small.