NZD/USD Price Forecast March 6, 2018, Technical Analysis

The New Zealand dollar has initially drifted lower during trading on Monday, but then bounced enough to form a significant pattern of strength. If we can break above the 50 EMA, and perhaps even the 0.7250 level, then I think that the market is ready to continue to the upside. It must be said that the market has made a “higher low” recently, and that of course is a sign that the buyers are becoming a bit more aggressive. If that’s the case, then there’s no reason to think that we can continue to go higher.

On a break to a fresh, new high, the market should then go looking towards the 0.7350 level above, which has been important more than once. A clearance of that allows the market to go even higher. The 0.75 level would start to come into focus at that point, which of course is the longer-term target in general. If we were to break down below the 0.7190 level, the market probably goes down to the 0.71 handle, in a bit of a “risk off” move. I anticipate that the overall attitude of this pair will be highly dependent on what happens in the US dollar around the Forex world, so therefore I believe that the New Zealand dollar itself is a bit of an afterthought. Pay attention to commodity markets, if they start to rally that could help the move to the upside as well.

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