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

The New Zealand dollar has formed a negative candle for the week but continues to find support near the 0.72 handle. I think the market is trying to build up enough momentum to break out to the upside, and finally clear the 0.75 handle. That was the high from last year, and if we can clear that area, that would be a very bullish sign, perhaps sending this market to the 0.7750 level, and then eventually the 0.80 level. Otherwise, we could breakdown, but I think at this point we would see plenty of support near the 0.70 level underneath, and perhaps even the 0.68 level which would be the bottom of the overall consolidate of region that we have been in over the last couple of years.

I think we’ve been trying to build a bit of a base, and if we can get above the cluster that we are currently banging up against, the market could go much higher, giving the opportunity for longer-term “buy-and-hold” traders to get involved. If that’s the case, the market could go as high as 0.88 over the next 2 years. Obviously, the New Zealand dollar has a strong correlation to the commodity markets and risk appetite around the world, which could be taking a hit as the Americans have started tariffs against both steel and aluminum. That type of nervousness in the marketplace could break this pair down, so be aware of that.

NZD/USD Video 05.03.18