NZD/USD Price Forecast March 21, 2018, Technical Analysis

The New Zealand dollar fell during the trading session on Tuesday, reaching towards the 0.72 level. This is an area that should be somewhat supportive based upon the large, round, psychological significance of the number, but also the fact that it was the recent lows. This sets up an area where the buyers could return, but if we break down below the 0.72 level, we could find this market unwinding down to the 0.70 level rather quickly. That’s an area where I would expect to see a lot of psychological support, as well as previous structural support. However, that’s not the bottom of the longer-term consolidation, that’s to be found down at the 0.68 level. It is possible that we reach down towards that level longer term, but this will be a result of a total of 4 interest rate hikes coming out of the United States, and perhaps more “risk off” behavior, especially in the commodities markets.

Otherwise, we could bounce from the 0.72 level as we await the statement coming out of the Fed, and that could give traders something to think about. If we bounce from here, I would anticipate that the 0.7250 level will now be the next target that they will try to break through. It should be resistance, and quite frankly I think it will remain so for at least the next 24 hours. A break above that level should send this market towards the 0.7350 level longer term.