NZD/USD have forecast August 3, 2017, Technical Analysis

The New Zealand dollar broke down significantly at the open on Monday as employment figures coming out of Wellington were less than stellar. However, we have turned around to form a massive hammer on the daily chart, so I believe that it’s only a matter of time before we reach towards the 0.75 handle. Eventually, I think we go above there, but it may take a bit of work. It might take the jobs number on Friday to finally get the significant amount of volatility necessary to break out. I don’t have any interest in shorting this market, as the 0.74 level underneath continues to be significantly supported. I believe that given enough time the Federal Reserve will probably weigh upon the US dollar and send this market higher, but keep in mind that the New Zealand dollars highly sensitive to commodity markets.

Buying dips

I think that buying dips continues to be the way going forward, and the 0.74 level underneath should continue to be an area where the buyers are attracted to this market. If we break above the 0.7550 level, the market should continue to go to the upside. This is an interest rate differential play as well, so while the New Zealand central bank looks to be a little bit more soft than originally anticipated, the reality is that the Federal Reserve is now looked at with suspicion.

NZD/USD Video 03.8.17