NZD/USD Price forecast for the week of February 5, 2018, Technical Analysis

The New Zealand dollar initially tried to rally during the week but turned around to form a bit of the shooting star. The shooting star of course is a negative sign, and I think that we may get a bit of a pullback. A breakdown below the bottom of that weekly candle stick should send this market down to the 0.72 level, and then possibly the 0.70 level next. Alternately, if we can break above the top of the candle, the market would probably go looking towards the 0.75 level above, which is a massive barrier. A break above there census market much higher for the longer-term and gives us more of a “buy-and-hold” attitude in this market, and perhaps the opportunity to buy the pullbacks as they occur.

In the meantime, it’s likely that the overall consolidation could continue, and therefore I think we could drop from here, perhaps reaching to lower levels. The question now is do we reach the bottom of the overall consolidation, or do we see buyers between now and then. Longer-term, I believe that this market does go higher, so the lower goes, the more likely does offer value. The 0.68 level underneath is the bottom of the overall consolidation, so I think between now and then it’s still a bit of a range bound trade.

NZD/USD Video 05.02.18