NZD/USD Price forecast for the week of March 26, 2018, Technical Analysis

The New Zealand dollar fell initially during the week but found enough support near the 0.71 level to turn things around. As I record this, we have broken above the 0.7250 level, which of course is a nice rebound after the market has seen both the Chinese and America apply tariffs against each other. There are a lot of concerns about a potential trade war, and that of course works against the New Zealand dollar as it is so highly leveraged to commodity markets. New Zealand sends a lot of his commodities to China, and if the Chinese economy gets hurt, that of course has an influence on how much New Zealand sends out. Beyond that, the New Zealand dollar is essentially a “risk on” currency, so if the market continues to climb, that’ll be a sign that the trading community is becoming less concerned about the potential trade war.

NZD/USD Video 26.03.18

If we break down below the bottom of the weekly candle, then I think the market will unwind towards the 0.70 level underneath. Below there, the market could probably go down to the 0.68 level. Ultimately, I think that it is only a matter of time before buyers return though, unless of course the trade war escalates to an unmanageable level. I think that the overall attitude of the market will continue to ebb and flow, and that of course will be reflected in these charts. Currently, it looks as if the 0.7350 level will be targeted, if we can get some type of a bullish sign.