NZD/USD Price Forecast March 9, 2018, Technical Analysis

The New Zealand dollar took a bit of a hit during Asian trading on Wednesday, dropping down towards the 0.7250 level. However, this region does look to be a bit supportive, so I think at this point we will probably see buyers come in and trying to support The Kiwi. Ultimately, I think that if we did breakdown below the 0.7250 level, the market probably goes looking towards the 0.72 level next. However, when you look at this chart it’s easy to see that we have made a series of “higher lows” recently, so I think that eventually the buyers should return as there could be an opportunity on these dips.

Longer-term, I would anticipate that this market should go looking towards the 0.7350 level, which has been important in the past. At that point, you start to face significant resistance that extends to the 0.75 level above, which is a massive resistance barrier. If we can break above that resistant level, then the market becomes more of a “buy-and-hold” situation, and could send this market to much higher levels, such as 0.80 eventually. The New Zealand dollar is highly sensitive to commodity prices and of course risk appetite around the world, as it is one of the least liquid major currencies. Because of this, if we see a “risk on” attitude around the world, then this pair should rally significantly. If we were to make a fresh, new low, then I think we probably go looking towards the 0.70 level.

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