NZD/USD Price Forecast March 1, 2018, Technical Analysis

The New Zealand dollar has pulled back during the trading session on Wednesday, reaching towards the 0.72 level. I think at this point the market looks likely to go to the 0.7250 level above, and if we can clear that level, then I think we can go to the 0.73 level, and then eventually the 0.7350 handle. Otherwise, if we break down below the 0.72 handle, I think at that point we will probably see a general downtrend pick up, perhaps reaching down to the 0.70 level, and then the 0.68 level after that.

I think overall, this is a market that continues to be very noisy, and of course very sensitive to risk in general. The higher the risk appetite is around the world, via commodity markets or stock markets, the better off that the New Zealand dollar will do. We do have rising interest rates in America which helps the US dollar, but that’s something that the market already knows about so I think that probably has been basically priced in.

Automotive higher, I think that adding on short-term dips improve themselves to be supportive enough might be the best way to go, and I would be very cautious about jumping in with a large amount. I think that short-term adding slowly is probably best, and I recognize that there is a lot of noise between here and the 0.75 handle. This is a short-term traders market.

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