The New Zealand dollar show signs of resiliency on Wednesday

The New Zealand dollar pulled back a bit during the trading session on Wednesday, reaching down to the 0.7275 level, an area where we have found both support and resistance in the past. By rallying the way we did towards the 0.73 level, the market should then continue to go higher if we can build up a bit of momentum. Ultimately, I think the market should then go to the 0.75 level, an area that is massively resistive. I believe that the market should continue to be noisy, but I also believe that there is a significant amount of support in the meantime. That supports should be somewhere near the 0.7250 level.

If we break down below there, the market could go down to the 0.72 handle, an area that is supportive as well. I believe that the New Zealand dollar will be sensitive to the risk appetite of traders after we get the jobs number tomorrow, which of course will be crucial for the overall attitude of the markets. I believe that the markets will continue to be noisy and choppy in the meantime, so if you are a short-term trader, you could be looking at the best opportunity for scalping in this pair. Obviously, we have an upper proclivity, but I don’t think we get significant momentum until the jobs number tells us that it is time to start buying.