The New Zealand dollar fell at the open on Monday, breaking below the 0.73 level. However, we did find support near the 0.7275 handle, so it looks as if the buyers are at least trying to make a stand, and if we can break out to a fresh, new high, extensively a move above the 0.7350 level, the market should then continue to reach towards the 0.75 level after that. I think that the market continues to be very noisy, but if we get a bullish proposition due to risk appetite in the stock markets or even better yet, the commodity markets, the New Zealand dollar will continue to rally. That being the case, I do like this market, but I want to see the 0.73 level cleared with at least an hourly close above it.
Value below
I still see value below, if we can get above the 0.7250 level, and that being the case I think that we have nice buying opportunities from time to time, and of course once we get above the holiday for the session, the market should then be a “buy on the dips” situation towards the 0.75 level which is important on longer-term charts. A break above there census market to the 0.7750 level after that. I have no interest in shorting this market until we break down below the 0.7250 level, which should send this market to the 0.72 level after that. No matter what happens, you can anticipate that there will be a significant amount of volatility.
NZD/USD Video 04.7.17
This article was originally posted on FX Empire