NZD/USD Price Forecast March 28, 2018, Technical Analysis

The New Zealand dollar broke down during the trading session on Tuesday, reaching down towards the 0.7250 level, an area that had previously been resistance. It looks as if we are trying to bounce from there, and as it was the scene of a breakout previously, it would make sense for this market to rally from here. Currently, I believe that we are going to continue to go to the 0.73 level above, and then eventually to the 0.7350 level. Remember, this is a market that continues to act in a “risk on/risk off” manner, so if the stock markets do well, it’s possible that the New Zealand dollar will as well. I think that the commodity markets will have its usual influence on this pair, so if they do well, I think that the New Zealand dollar will rally.

If we were to break down below the 0.7250 level, the market probably breaks down significantly and reaches down to the 0.72 level after that. I believe ultimately this pair will continue to find buyers every time it dips, mainly because we have seen such a positive move to get to this area. I think that the New Zealand dollar will continue to be very choppy, but overall, I think it is relatively well supported, and that will be the most important thing to pay attention to.

I believe that the longer-term target is the 0.75 level, which will take a while to get to. It will take a certain amount of momentum as well, so I think that the choppy conditions will continue, but certainly with a positive bent.