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

The New Zealand dollar has gone higher during the trading session on Thursday, reaching towards the 0.7225 handle before rolling over again. It looks as if there is a lot of resistance above at the 0.7250 level as well, so at this point I think that if we can break above that level, the market could go much higher. Otherwise, there is support just below at the 0.7190 area, extensively the 0.72 handle. I think on a breakdown below there, the market could probably reach down towards the 0.70 level longer term, as it is the next major round number.

If we were to break above the 0.7250 level, the market probably goes to the 0.73 handle, followed very quickly by the 0.7350 level which was the bottom of the recent consolidation. Pay attention to the overall attitude of the market, as you continue to see the correlation between the New Zealand dollar and risk appetite in general. Especially the soft commodity markets, as they are representation of most of the New Zealand economy.

The US dollar of course has its part to play also, so I think that if the US Dollar Index is rolling over, by extension that should push this market higher as the US dollar will weaken. We have recently seen a lot of strength in the greenback due to higher interest rates coming out of the United States, but I think that has started to be priced into the market fully. Ultimately, I think that buyers will return given enough time.

Economic Calendar