NZD/USD Price Forecast – New Zealand dollar rallies during the trading session on WednesdayThe New Zealand dollar shot higher during the trading session on Wednesday, reaching towards the 0.7050 level. That’s an area that is previous resistance, and therefore it’s not surprising that the market pauses in this area. I think short-term pullbacks will continue to be buying opportunities, with the 0.70 level being a bit of a floor. As I record this, we are awaiting the FOMC Statement, which of course is going to be massively influential when it comes to the US dollar.
The New Zealand dollar rallied significantly during the trading session on Wednesday, reaching towards the 0.7050 level above. That’s an area that is resistance, and I think if we can clear the 0.7060 level, the market should continue to go higher, perhaps reaching towards the 0.71 handle, perhaps even the 0.72 level. At this point, I believe that the 0.70 level underneath has offered a significant amount of support, and that should be thought of as the “floor” in the uptrend, at least in the short term.
If the Federal Reserve is especially hawkish or aggressive when it comes to the interest rate situation, then we could turn around to break the 0.70 level, and then go much lower, perhaps reaching down to the 0.6950 level, followed by the 0.69 handle. It’s very difficult to imagine that this market will break down though, and I think that we will continue to see bullish pressure here, especially if stock markets and other risk assets can continue to rally as well. Remember, the New Zealand dollar is essentially a “riskier currency”, so therefore the better traders feel about the global economy, the better off the New Zealand dollar dies as it represents commodities flowing to Asia.