NZD/USD Forecast August 15, 2017, Technical Analysis

The New Zealand dollar fell slightly during the day on Monday, but continues to see support just below current trading conditions. If we can break down below the 0.7250 level, the market will probably go down to the 0.70 level underneath. That is an area that should offer quite a bit of psychological support, as it is a large, round, psychologically significant number. Having said that, the 0.7325 level above being broken to the upside is a very bullish sign. It really comes down to risk appetite, which seems to be back and forth at the moment. Currently, I think that we need to pay attention to stock markets and commodity markets around the world to get an idea as to what the New Zealand dollar should do. Remember, it tends to follow these riskier assets, so if they start to rise, then I would be much more comfortable buying this market as it should then go to the 0.75 handle above.

The negative scenario

If we break down below the 0.7250 level, I think that the market will probably start to accelerate to the downside. We are in a downtrend currently, at least over the last couple of weeks. However, it seems that some of the fear is starting to come out of the market, as the situation in North Korea has calm down. Because of this, we may see traders coming into the New Zealand dollar to pick up some of that risk premium.

NZD/USD Video 15.8.17