New Zealand dollar continues to struggle against greenback on Tuesday

The New Zealand dollar initially rally during the day on Tuesday, reaching towards the 0.6975 level before rolling over and wiping out the entirety of the day. We had broken above an ascending triangle during the previous session, and we are now testing that potential support level. However, I think the New Zealand dollar is going to continue to suffer at the hands of the greenback, as we have higher interest rates in America they continue to drive the greenback higher in general. I believe that the commodity markets will continue to suffer overall, perhaps with the exception of oil.

Ultimately, I think that the market will be able to break above the 0.70 level anyway, and that was the measured move from the ascending triangle. I think the closer we get to the 0.70 level; the more aggressive sellers will get, and they will try to take advantage of the US dollar being cheap. With this, I continue to sell the rallies as they occur, and I think that it’s only a matter of time before this market breaks back down to the 0.6850 level again, and then eventually tests the 0.68 level which is the bottom of the longer-term consolidation. This pair will be volatile, but I think with a decidedly downward slant overall. Most rallies will be faded.

NZD/USD Video 23.05.18