The New Zealand dollar has rallied significantly during the day on Tuesday during early trading in America as CPI numbers came out as expected. Because of this, it looks as if the economic picture continues to be healthy, and that of course favors commodities and the New Zealand dollar itself. I believe that at this point we will break above the 0.7350 level and go looking for the 0.74 handle. I believe that we will not only reach that level, but breakout above there given enough time and go looking for the 0.75 level after that.
NZD/USD Video 14.03.18
At this point, I suspect that pullbacks will continue to offer value, in a currency market that is trying to build up enough momentum to finally break the 0.75 level on the longer-term charts, which is very difficult to break through. However, once we do break above that level I feel that the market probably goes to the 0.7750 level, and then beyond to the 0.80 level after that, making it a bit of a “buy-and-hold” type of scenario. I have no interest in shorting the Kiwi dollar, I believe that we will continue to push higher as risk appetite increases around the world in various instruments, not just the currency markets.
In fact, it’s not until we break down below the 0.7250 level that I would consider selling this market. Even then, I suspect that the downside is somewhat limited, with the 0.70 level offering massive support as well.
This article was originally posted on FX Empire
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