The New Zealand dollar has been rather choppy during the session on Tuesday, but found enough support near the 0.7150 level to turn things around and form a hammer on the hourly chart. It’s likely that we are going to continue to see volatility, but this pullback looks as if it is turning around, and that should send the market towards the 0.72 level above. I believe that breaking above the 0.72 level is the next barrier that we should continue to go higher. Ultimately, I think that the market will go looking towards the 0.75 level, and if the markets get a bit of a “risk on” feel, this pair should continue to go higher.
I think pullbacks continue to find plenty of support anyway, and I also believe that the 0.71 level underneath is massive support. A breakdown below there then has the market looking for the 0.70 handle, which is massively supportive. Ultimately though, I think that this market goes higher and therefore I don’t have any interest in shorting. I’m waiting for opportunities to go long, which should present themselves quite often. The New Zealand dollar is highly sensitive to the commodity markets, and of course stock markets as they show the risk appetite. Ultimately, I think the 0.75 level above will be massively resistant, so I think it’s going to take several times to break above there. In the meantime, it’s likely that were going to see buyers enter this market as the recent impulsive move to the upside shows a significant amount of bullish pressure. I think that the market will continue to build up momentum, and that we should continue to go forward when it comes to the kiwi dollar as the market looks very favorable.
NZD/USD Video 18.10.17
This article was originally posted on FX Empire
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