NZD/USD Price forecast for the week of February 19, 2018, Technical Analysis

The New Zealand dollar has rallied significantly during the week, breaking above the 0.7350 level, reaching towards the 0.75 level. Ultimately, if we break above that level, then the market is free to go much higher.
Christopher Lewis
NZD/USD weekly chart, February 19, 2018
nzdusdWEEK

The New Zealand dollar initially fell during the week but found enough support near the 0.7250 level to turn around and break to the upside. We have made a significant search higher, and that of course is a very bullish sign, but I also recognize that there is a significant amount of resistance at the 0.75 handle, so it may take several attempts to break above there. As you can see on the chart, I have a lavender box on the chart that suggests there is a range of resistance. It is because of this, I believe that waiting on the breakout is probably the best thing to do. I believe that the 0.7250 level underneath is a bit of a “floor”, as we have seen lately.

If we can break above the 0.75 level in close above there on a daily chart, I am a buyer of the New Zealand dollar as it should be free to go much higher at that point. However, we may have several weeks’ worth of work to do before we can make that move. Alternately, if we break down below the 0.7250 level, it’s likely that we could go to the 0.72 level, and then eventually the 0.70 level. Below there, we have the previous support at the 0.68 level which is the bottom of the entire uptrend that we had seen over the last couple of years, and the bottom of the overall consolidation that has been so important in the last 18 months.

NZD/USD Video 19.02.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US