NZD/USD Forecast August 14, 2017, Technical Analysis

The New Zealand dollar initially fell on Friday, testing the 0.7250 level for support. We did find support there, so we bounced enough to reach towards the 0.7325 level. The markets continue to show signs of volatility and fear, so I think that this market is going to be very difficult to deal with. If we can break above the 0.73 level on a daily close, the market should continue to go higher. However, I think that the 0.7250 level underneath being broken would be a very negative sign, perhaps sending the New Zealand dollar down to the 0.70 level which of course has a certain amount of psychological relevance.

Commodity markets

Commodity markets of course are important when it comes to the New Zealand dollar, as it is an agricultural exporter. That being said, there is a certain amount of fear and the markets right now as North Korea the United States job on each other, and that has greenback traders looking to go long of the US dollar. This weighs upon the New Zealand dollar, as it is considered to be a bit more “risky” than the US dollar. Either way, I think we are looking at a lot of volatility, as headlines continue to cross the wires. Smaller position sizes will probably be the best way to trade this market, in order to keep your losses small.

NZD/USD Video 14.8.17