NZD/USD Forecast November 19, 2015, Technical Analysis

The New Zealand dollar has broken to a fresh, new low, and as a result we believe that this market is going to continue to go lower. Keep in mind that the New Zealand dollar is highly sensitive to the commodity markets overall, so make quite a bit of sense that the New Zealand dollar struggles. On the other side of the equation, you have the US dollar which has been strengthening for some time, mainly based upon not only fear, but the actual fact that the jobs numbers in America look relatively strong.

Meanwhile, the New Zealand economy is highly sensitive to what goes on in Asia, which of course looks a bit soft at the moment. Right now, all things US related are what is catching the imagination of traders around the world, and with that it makes sense that we continue to see sellers enter this market. Quite frankly the 0.65 level looks very resistive all of a sudden, and it now appears that we are going to reach down towards the bottom of the previous support at the 0.62 level.

At this point in time, it’s difficult to imagine that people are going to want to take a significant amounts of risk when it comes to the currency markets. The New Zealand dollar is without a doubt one of the “riskiest” currencies as far as the G 10 currencies are concerned. We believe that the New Zealand dollar will continue to be shunned, and with this it’s probably going to be a situation where every time this market offer selling opportunities on short-term charts every time we rally and show signs of a struggle.

At this point in time, not only is the 0.65 level resistive, but we believe it extends all the way to the 0.66 level. This is a market that has been in a massive downtrend for some time, and there is nothing on this chart that suggests that the trend is over currently. We would however recommend being quick to take profits as the one thing we probably can count on is volatility.