NZD/USD Forecast January 31, 2017, Technical Analysis

The NZD/USD pair initially dipped during the day on Friday, but found enough support near the 0.7450 level to bounce and break above the 0.75 level again. Now that we have done that, looks as if the New Zealand dollar will probably continue to grind higher, but I also recognize that there is a lot of noise above, so therefore I think that a lot of pullbacks will probably continue to be the case going forward. I’m a buyer of these dips, because I believe that the New Zealand dollar will continue to benefit from a stronger commodity market, especially considering that the Federal Reserve looks to be very dovish. A dovish Federal Reserve tends to weigh upon the US dollar, so it makes sense that people will look for commodities to protect well, and that tends to extend to the New Zealand dollar being bought.

Buying dips

I continue to buy dips in the New Zealand dollar, and I believe that it’s only a matter of time before we break out to the upside. I think there is plenty of support below at the 0.74 level as well, so it’s not until we break down below there that I would even remotely consider selling, and even then, I would have to think about it. I like the NZD/USD pair, and continue to think that we will go reaching towards the 0.77 level above, and eventually the 0.80 level after that. Selling isn’t even a thought.

NZD/USD Video 31.7.17