NZD/USD Price Forecast January 16, 2018, Technical Analysis
The New Zealand dollar initially gapped lower at the open on Monday, but turned around to rally towards the 0.73 handle above. With it being Martin Luther King Jr Day in America, volume was very thin once the Americans came on board, but at the end of the day it looks as if there has been a significant “anti-US dollar” bias in the marketplace. This lifted most commodities, and that of course had a beneficial effect on the New Zealand dollar as it is so highly leveraged of those commodities.
From a technical analysis standpoint, the 24-hour exponential moving average looks good on the hourly chart, as it has offered a significant amount of support. When I look at the longer-term charts, I recognize that there is a consolidation area between the 0.68 level on the bottom, and the 0.75 level on the top. Because of this, I suspect that we are going to go looking towards the 0.75 level over the longer term, and the pullback should continue to offer buying opportunities. I recognize that there is a general negativity floating around the US dollar in the Forex world right now, and therefore I don’t have any interest in buying that currency. In fact, it looks as if simply picking a currency against the US dollar is all it takes right now, with perhaps the exception being the Canadian dollar, as Canada has its own bundle of issues to worry about.
NZD/USD Video 16.01.18
This article was originally posted on FX Empire