New Zealand dollar rallies during the week

The New Zealand dollar rally during the week, breaking above the 0.7350 level, an area that has been resistive more than once. There is a “zone of resistance” extending to the 0.75 level, so I think that although we will more than likely go towards the top of that range, it may be a bit choppy along the way. It is because of this that although I think that longer-term traders should be bullish, they may be better served looking at short-term charts to find better entry points. That gives you the ability to pick up a bit of value, but also maximize your gains.

If we can break above the 0.75 level, I think at that point we should continue to go much higher and reach towards the 0.77 level next. I think that the market should continue to be volatile, but I also believe that is long as we can keep the “risk on” attitude around the world, the New Zealand dollar should be a beneficiary as per usual. Alternately, if we get some type of negative headlines coming out of either the United States or China, we could roll over and go looking towards the 0.7250 level for support. All things being equal, I think we are about to try to break out of the consolidation that we have been in for almost 2 years. Again, I remain bullish, but I also understand that patience might be needed.