NZD/USD Price Forecast March 27, 2018, Technical Analysis

The New Zealand dollar has rallied significantly during the trading session on Monday, breaking above the 0.73 level at one point. I believe that the market should continue to go to the 0.7350 level if the US dollar continues to get hit. It has had a very rough couple of sessions after talks of trade wars, but I think the market will continue to see a lot of volatility. Remember, the New Zealand dollar is highly leveraged to commodity markets, but at this point most of what’s going on is simply the greenback being sold off.

The 0.7250 level underneath is support, and I think that if we can stay above there buying is easiest thing we can do. If we break down below the 0.7250 level, the market could find itself going down to the 0.72 handle. That would probably coincide with a general “risk off” attitude around the world, but right now I think that the markets are starting to feel a bit better about the situation between the United States and China as it appears things are calming down. That should give us a bit of a “risk on” attitude, and that would send the New Zealand dollar higher as it typically rallies in those situations.

If we were to break down below the 0.72 handle underneath, then we would probably unwind rather rapidly. I don’t think that we are going to explode to the upside, to simply continue to consolidate in this general vicinity.