NZD/USD Price Forecast March 5, 2018, Technical Analysis

The New Zealand dollar fell significantly during the day on Friday, reaching towards the 0.7225 level. We found a bit of support there, and if we can hang onto this area I think we will eventually break above the 0.7275 handle, and go higher, perhaps reaching towards the 0.7350 level after that. That’s an area that should cause a significant amount of resistance, but a clearance of that would indeed bring in more money as we would be building momentum to finally break above the 0.75 handle above which I see as a massive barrier. A break above there has more “buy-and-hold” trading coming on board.

If we break down below the 0.7190 level, the market is likely to continue to go lower, perhaps down to the 0.70 level. This is possible, because we are starting to see tariffs come out of the United States that could start a trade war. If that happens, I suspect that a lot of commodity markets will get crushed, and that will be very negative for the kiwi dollar as it is so highly sensitive to those commodities. I think that the market will eventually decide to go higher, but we need to get through some of the headlines first before that happens. I think that the market will be very noisy in the short term, but eventually we should get some type of impulsive the that allows us to place a position on.

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