NZD/USD Forecast August 9, 2017, Technical Analysis

The New Zealand dollar went sideways initially during the day on Tuesday, but then broke below the 0.7350 level to show even more weakness. I believe that the market should continue to go lower, perhaps reaching to the 0.72 level. I think that every time that we rally, we should be looking for exhaustion that we can sell as the US dollars starting to pick up significant strength across the Forex world. Remember that the New Zealand dollar is highly influenced by commodity markets, so if the struggle, it’s likely that this market will as well.

The 0.75 handle above

The 0.75 level above for me is very important, and if we can break above there becomes more of a “buy-and-hold” type of market. However, I think that the ability for this market to break above there is probably somewhat limited in the near term, so I continue to sell rallies until we break above the 0.74 handle, something that doesn’t look very likely to happen in the short term. I believe that the 0.72 level will be rather supportive, but if we were to break down below there I think that the next target would be the 0.70 handle. Either way, I suspect that we will get quite a bit of volatility, as the New Zealand dollar has an interest rate announcement attached to it early in the day, and that of course can cause a significant amount of noise.

NZD/USD Video 09.8.17