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  • NZX 50

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    +0.0028 (+0.47%)
     

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    +0.0011 (+0.20%)
     

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  • NZD/JPY

    92.7830
    +0.6680 (+0.73%)
     

NZD/USD Price Forecast February 27, 2018, Technical Analysis

Christopher Lewis
Updated
The New Zealand dollar has been extraordinarily volatile during the trading session on Monday, shooting straight up like a rocket initially, but finding enough resistance at the 0.7350 level to rollover significantly from there.

The New Zealand dollar has rallied significantly during the initial part of the Monday trading session, reaching towards the 0.7350 level. That’s an area that obviously has a lot of influence based around, as we have seen the market failed there 3 times recently. However, I do think that eventually we will get enough momentum to break above that level, and as we are pulling back later in the day, I think that somewhere just below the 0.73 level there should be buyers looking to pick up the New Zealand dollar “on the cheap.”

The 0.7250 level underneath should be the “floor” in the market, and I think that if we can stay above that level, it’s only a matter of time before we get the upward momentum necessary to break out. I think that the markets of course will have the usual influences, as the New Zealand dollar is highly sensitive to the overall risk appetite around the world, see not only in the stock markets but also the commodity markets. I also recognize that the US dollar and its overall treatment by the Forex world will have a massive effect on this market also.

If we were to break above the 0.7350 level, the market should then go to the 0.7425 handle. I think that the market will do this, but it just comes down to whether you can be patient enough to realize the gains. I would not have any interest in shorting this market, icy far too much in the way of support underneath.

NZD/USD Video 27.02.18

This article was originally posted on FX Empire

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