The New Zealand dollar, being a risk appetite driven currency pair, looks likely to try to break out to the upside as we continue to press up against the 0.7050 level above. If we can make a fresh, new high, the market could continue to go much higher. At that point, I would anticipate that we go looking towards the 0.72 level after that. In the short term, I believe that the 0.70 level underneath should be support, as it has been important more than once. Beyond that, it is a psychologically important figure, so it makes sense that we should see plenty of interest in this pair near that area.
If we were to break down below the 0.70 level, then I think that the market could break down significantly. In the meantime, I think that buying dips should continue to work out, and if we get some type of good news coming out of the summit between the United States and North Korea, that could be yet another reason to send this market higher. Obviously, if we get some type of situation coming out of that situation that’s less than optimal, we could see this market pulled back significantly. At this point though, I think most traders are banking on a good result, so I believe that we will eventually see the market go looking towards the 0.72 level above. A breakdown would more than likely find support again at the 0.69 handle.
NZD/USD Video 12.06.18
This article was originally posted on FX Empire
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