NZD/USD Price Forecast January 15, 2018, Technical Analysis

The New Zealand dollar drifted lower during the trading session on Friday, perhaps being a bit of a “profit-taking exercise.” Ultimately, the 0.72 level underneath has offered support, just as it had previously offered resistance in the past. · FX Empire

Christopher Lewis

Updated Fri, Jan 12, 2018, 6:35 PM

The New Zealand dollar drifted lower on Friday of course is a negative sign, but quite frankly it’s not that surprising considering that we had extended recently. However, I think that this pullback should be a buying opportunity and therefore we should continue to reach towards the 0.73 handle, and then eventually the top of the overall consolidation that we have seen over the last several months, meaning that we will target the 0.75 level above. If we break down below the 0.72 handle, the market should then go to the 0.71 level underneath. Below there, it’s the 0.70 level. I think it’s only a matter of time before the buyers come back, and that being the case it’s likely that we will continue to find plenty of volatility, but I think that we will find opportunities.

Looking at the marketplace, I believe that every time we pull back, it is essentially the kiwi going on sale, as the greenback has been breaking down over the last several sessions. I think that given enough time, it’s likely that the 0.75 level will be targeted, and if we can break above there becomes more of a longer-term “buy-and-hold” situation. The stochastic oscillator has crossed on a dip, suggesting that perhaps the buyers are getting involved, but it is not necessarily in the oversold condition, so that in and of itself isn’t a trading signal. It does show the proclivity for buyers to jump into the market though, and ultimately, I believe it’s yet another positive sign.