New Zealand dollar continues a rough ride lower on Wednesday
The New Zealand dollar fell rather significantly early during Wednesday trading, but found the 0.73 level to be a bit supportive. We bounced significantly from there, but as we approach the previous consolidation area, convention dictates that we should see selling pressure. It is because of this that I am cautious about going long, at least until we break above the 0.7350 level. If we can do that, then I think we have a significant shot to go higher. Otherwise, I will wait for some type of daily candle that looks supportive to start going long. I also recognize that the 0.7250 level should be supportive also, so I don’t think that the downside will last that long.
If we did breakdown below the 0.7250 level, then I think we could continue the downward slide to the 0.72 level, followed by the 0.70 level. Remember though, this pair is highly sensitive to risk appetite and if we get good news coming from either the United States or China, or perhaps the situation in Syria calming down, we could get a pop in this market as a lot of money will go looking for risk appetite. I believe that the market will ultimately go higher, it’s just that we may have a bit of work to do before we clear a lot of the hurdles ahead of us. Ultimately, I believe that the New Zealand dollar will try to get to the 0.75 level but is going to take a long time to get there.