NZD/USD Price Forecast – New Zealand dollar choppy on Friday

The New Zealand dollar has gone back and forth during the trading session on Friday, as we continue to see a lot of reaction to potential tariff escalations between the United States and China. We also had a major sell off during the day as the ECB was very soft on Thursday, and this could be a continuation of that move. However, we sold off so drastically that it makes sense that a lot of people would not be willing to put a lot of money into the market ahead of the weekend as there could be so many headlines.

If we break above the 0.6960 level, the market could rally towards the 0.70 level above. That is a large, round number that should attract a lot of attention, and I believe that it is only a matter of time before the sellers would return at that area if things stay the same. However, if we break down from here I anticipate that the market will probably go looking towards the 0.68 level underneath which has been longer-term support. I think this is a market that is going to act solely on fear and greed, and therefore headlines. I think that the market will continue to be noisy, and of course difficult. However, I prefer to sell rallies until we can close above the 0.70 level on a daily chart. Beyond that, I suspect that the market will continue to be very noisy and erratic as fear continues to be a major issue.

NZD/USD Video 18.06.18