NZD/USD Price Forecast February 23, 2018, Technical AnalysisThe New Zealand dollar has rallied significantly during the trading session on Thursday, reaching towards a significant resistance barrier. At this point, it looks as if the New Zealand dollar is trying to take off to the upside.
The New Zealand dollar has rallied rather significantly during the trading session on Thursday, breaking above the 0.7350 level. By breaking above there, it looks as if we are going to continue to see a bullish move to the upside, and I believe at this point the New Zealand dollar will continue to be favored as a “risk on” vehicle for currency traders. I think short-term pullbacks will continue to attract buyers, and it is probably going to continue to be a situation where traders are willing to come in and pick up these dips as value. Ultimately, this market continues to be very bullish in the longer-term, and I think it’s only a matter of time before we reach towards the psychologically important 0.75 handle, which breaking above would be an extraordinarily bullish sign.
Over the longer term, I think that if we can break above the 0.75 level, the market will become more of a “buy-and-hold” situation. Ultimately, I do like the idea of buying the Kiwi dollar, as I believe that the US dollar is going to struggle in general. The kiwi dollar is a little less liquid and some of the other major pairs, so that sends this market much higher when the US dollar starts to sell off. I believe that the market will continue to be a bullish one indeed. This will be especially true if the commodity markets take off, which is a main driver of the New Zealand dollar over the longer term. Ultimately, I’m a buyer not a seller.