NZD/USD Price Forecast March 23, 2018, Technical Analysis

The New Zealand dollar initially tried to rally during trading on Thursday, reaching above the 0.7250 level, but finding that area a bit too resistive to continue above. By pulling back the way it did, it suggests that we are going to break down from here. If we get more volatility and negativity in stock markets, I suspect that will be the case. The Kiwi dollar is highly sensitive to risk appetite around the world, so pay attention the stock markets, commodity markets, and the like. If the bond market picks up, that typically shows a lack of risk appetite, and that almost always punishes the New Zealand dollar.

I believe that the market will go looking towards the 0.72 level, and then possibly the 0.7150 level. The alternate scenario is that we break above the 0.7265 handle, which would send this market looking towards the 0.73 level followed very quickly by the 0.7350 level. However, I should say that as I record this, price action does not look very good for this currency pair, and I think we are going to continue to see a bit of a “risk off” attitude around the world. With that in mind, I believe there’s much more likelihood of a breakdown than anything else occurring in this market. Once we break down, the next major support level is to be found at the 0.70, which is quite a way from here, and could set up a nice selling position.