New Zealand dollar drifts aimlessly on Friday

The New Zealand dollar did very little during the day on Friday, essentially going sideways with a slightly downward tilt as we reach into the weekend. Perhaps people are a bit cautious about putting too much risk on ahead of the weekend and of course any statement that comes out of the G7. There are a lot of concerns about the meeting being contentious as the Americans are starting to slap tariffs on people, but at the end of the day I think that this market should be looked at more from a weekly standpoint. The shooting star that formed on the weekly chart shows that we are in fact running out of steam. If we break down below the 0.70 level for a significant amount of time, I think that the market could go down to the 0.6850 level. Otherwise, if we make a fresh, new high the market could continue to go towards the 0.72 level above.

Looking at the longer-term charts, we are still within consolidation between the 0.68 level in the bottom, and the 0.75 level on the top. We have had a nice bounce; soul pullback might be necessary to build up the needed momentum to turn this monster around. This market has been consolidating for over two years, and therefore it would not be a surprise to see value hunters come in eventually. If we can get some type of positive reconciliation between the G7 members, that might be reason enough to send the New Zealand dollar higher as well.

NZD/USD Video 11.06.18

This article was originally posted on FX Empire

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