NZD/USD Forecast October 2, 2017, Technical Analysis
If there’s any short-term traders market right now, it’s the New Zealand dollar/US dollar pair. We have been bouncing around just above the 0.72 level, and in a relatively tight range. I believe that the 0.71 level underneath his massively supportive as well, and I also recognize that there is a lot of noise above. I think short-term back and forth traders will probably take advantage of this volatility, using range bound strategies such as anything involving the stochastic syndicator. Because of this, I think that small positions are probably the best way to play, keep in mind that risk appetite can come into play in this market as well. Commodity markets drive the New Zealand dollar more than anything else, especially the soft commodity such as grains and milk, so while currency traders don’t typically follow these markets, you may have to with this type of tight consolidation.
In general, I don’t necessarily like trading the short-term tight markets, so I will be placed in any money to work at all. But, certainly those who are used to scalping charts will find this a very attractive environment. I think that overall, we have a proclivity to go higher, but we don’t have the catalyst yet, so it’s unlikely to see anything involving an explosive move anytime soon. However, once we do get that move, we could pick up traction rather quickly as the New Zealand dollar is the least liquid of the major currencies, and therefore tends to move quicker than the others. Pay attention to overall risk appetite, that should have an effect on this market as well, going higher with more riskier trading, and going lower with more of a risk off type of attitude globally. Either way, smaller positions are probably the best way to play this market.
NZD/USD Video 02.10.17
This article was originally posted on FX Empire