The New Zealand dollar falls again during the Tuesday session
The New Zealand dollar initially tried to rally during the trading session on Tuesday but found enough resistance above to turn things around and send things lower. I think that the market now is going to try to break down below the 0.71 handle, and that should open the door to the 0.70 level which of course is much more significant and important from a technical standpoint. I believe that the 0.72 level above continues to be resistance, so if we were to break above that level it would be a very bullish sign indeed.
This market is quite often influenced by the overall attitude of commodity markets, so if in general they are going higher, this pair does as well. The US dollar has been strengthening due to interest rates rising, so that could have an influence on this market as well as it brings up the value of the US dollar. I believe that the “hard bottom” of the market is closer to the 0.68 level, so we could see this market on wind all the way back to that level and stay within the overall consolidation that we have been in for several years.
If we were to break above the 0.7220 level, then I think we would probably make a move towards the 0.7350 level above, which has been resistance more than once. I believe that if you are patient enough, the market should give you an opportunity to follow the overall downtrend.