NZD/USD Price Forecast March 12, 2018, Technical Analysis

The New Zealand dollar pulled back initially during the trading session on Friday but bounced enough from the 0.7250 level to test the 0.73 level later in the day. This was in reaction to a stronger than anticipated jobs number coming out of America, and the “risk on” trade that followed. · FX Empire

Christopher Lewis

Updated Fri, Mar 9, 2018, 10:12 PM

The New Zealand dollar pulled back a little bit during the trading session on Friday, testing the 0.7250 level underneath. That’s an area that has been supportive more than once, and it is also an area that has been resistance previously. The market bounce from there and reach towards the 0.73 level. If we can break above the 0.73 level, the market then goes to the 0.7350 level. That’s an area that has been in focus more than once. If we can break above that level, the market should continue to go to the 0.75 level above. That isn’t necessarily going to be an easy move, but I do think that’s what the market is trying to do. This will be especially true if we continue to see a bit of risk appetite come back into the marketplace.

I think dips continue to offer value, unless of course we were to break down below the 0.72 level, because of that would be a massive amount of negativity coming into the market and sending New Zealand dollar traders back down to the 0.70 level underneath. At that point, I think that the market could even break down to the 0.68 level which is the bottom of the overall consolidation that we have seen for months. However, at this point I think it’s more than likely that we are ready to go long on short-term pullbacks that show signs of support. I think it’s going to be noisy, but I favor the bullish pressure.