Yahoo Finance NZD/USD Price Forecast January 31, 2018, Technical Analysis
The New Zealand dollar has come back and forth during the trading session on Tuesday, just as we have for the last couple of sessions. I think that the market will eventually go looking towards the 0.75 level above, which is the top of the longer-term consolidation range that we have been in for some time. I think that the market falling from here will only be an opportunity to pick up value, but I also recognize that it could be a bit noisy.
The US dollar has been pummeled lately, and the New Zealand dollar tends to benefit greatly from this for a couple of different reasons. For starters, the New Zealand dollar of course is highly sensitive to commodity markets, which by their very nature benefit from the soft US dollar. I believe that the market will look to the commodity markets, the US dollar itself, and interest rate differentials to send this market much higher. If we can break above the 0.75 level, the market should continue to go much higher, with the initial target being 0.7750 above.
I like buying pullbacks, as it should offer plenty of value in a market that is obviously bullish. If we can get that move above the 0.75 level, it could be rather explosive, and it could turn into a longer-term trade. I recognize that the 0.7250 level should be supportive, just as the 0.70 level will be, so even if we do get a selling opportunity from the short term, I will probably step on the sidelines and look for value to the upside instead.
NZD/USD Video 31.01.18
This article was originally posted on FX Empire
