NZD/USD Price Forecast March 7, 2018, Technical Analysis

The New Zealand dollar has exploded to the upside during the trading session on Tuesday, breaking above the 0.7250 level. The market then reached towards the 0.73 level above, which of course is a large, round, psychologically significant number. I think that the 0.7250 level underneath is massively supportive, and I think that will continue to be the “floor” in the market going forward. After all, we have recently seen the market form a “higher low”, which of course is a very bullish sign.

Ultimately, I believe that the 0.75 level above is the target, and I think that although it’s going to be very difficult to get there, I do believe that’s the target. Now that we had formed the “higher low”, I think that the market will continue to go to the upside. If we break down below those recent lows, then I think we would probably go down to the 0.71 level. Ultimately though, remember that the New Zealand dollar is highly sensitive to not only the commodity markets, but the overall attitude of traders around the world. If they are willing to put money to work, that typically benefits the New Zealand dollar as the carry trade of course favors the Kiwi. Alternately, if there is some type of safety play, it makes sense that the US dollar would benefit, and traders would walk away from this currency. Remember, out of the major currency pairs that we follow, this is the least liquid one, so it moves very quickly.

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