New Zealand dollar brakes 0.72The New Zealand dollar has broken below the 0.72 level during the trading session on Monday, reaching down towards the 0.7175 level. I believe at this point the market should continue to find buyers underneath, but I think that breaking below the 0.72 level dollars for tell a potential buying opportunity underneath.
The New Zealand dollar broke down below the 0.72 level during the trading session on Monday, showing signs of weakness yet again. However, the strengthening US dollar is probably a short-term phenomenon, and I believe that the market will eventually find buyers, but now that we have broken below the 0.72 level, it’s likely that we could continue to go lower. However, if we were to turn around and break above the 0.7225 level, then I think the market would start to rally again as it would show a sign of strength returning to the market. If that happens, then I expect this market to go looking towards the 0.73 level. Otherwise, I think that the market will probably go down to the 0.71 handle, which is an area that is minor support, and quite frankly at that point I would anticipate a move down to the 0.70, as it is much more important.
Ultimately, remember that the New Zealand dollar is highly leveraged of the commodity markets, which in a sense means that it is highly leveraged to risk appetite around the world. I believe that the market should continue to show signs of value if you can get an opportunity to see a bounce. I think that short-term buying opportunities will present themselves, but I would do so on a very small position, and then add as the market continues to rise. At that point, then I would be looking to build a larger position.