NZD/USD Forecast July 17, 2017, Technical Analysis
The New Zealand dollar had a wild ride during the day on Friday, as we started out very calm, and then fell over to reach the 0.73 level for support. We bounced from there rather significantly, slicing through the 0.7350 level, and then fell just as significantly. The volatility continues to be very difficult to deal with, and therefore small positions are probably the best way to trade this market. However, if we were to make a fresh, new high, then buyers will probably continue to jump in on dips. I do think that there’s more of an upward proclivity to this market, but more than likely we will see volatility continue to be a major issue. Ultimately, this is a market that I think will find a certain amount of buying opportunities on the short-term dips, but adding to winning positions is probably the best way to deal with this market, as there is far too much in the way of volatility to risk what could be significant losses.
Building larger positions
As I suggested, the dips should be buying opportunities, but I also recognize that the markets will continue to be very noisy. So, having said that, I think the best way to deal with this is to simply add to your positions as they work in your favor. If we were to break down below the 0.7275 level, I think at that point we probably go down to the 0.72 level which is even more supportive than the other levels on the chart. However, I think that it is very unlikely that happens. The market continues to be difficult, but I believe longer-term bullish.
This article was originally posted on FX Empire