NZD/USD forecast for the week of June 26, 2017, Technical Analysis

The New Zealand dollar initially fell during the week, but found enough support underneath to turn around and form a bullish candle. The bullish candle is testing a downtrend line, but if we can break above that I think that the market should then go to the 0.75 handle. Ultimately, this is a market that should continue to find buyers on dips, and if we can break above the 0.75 level, we should continue to go even higher. I don’t have any interest in trying to find the uptrend, so if we dip, I’ll be looking for buying opportunity. I do recognize that we are bit overextended during the last month, so it might be best to leave this market alone until we get the impulsive move to the upside or perhaps a significant pullback that finds buyers.

Commodity markets

The commodity markets continue to look very bullish, and if it’s only a matter of time before we will eventually see this played out in the New Zealand dollar. However, I like the idea of picking up value, so I have an idea of buying on pullbacks more than anything else. However, that break out to the upside of course would send a new level of impulsivity into the market. Remember, the New Zealand dollar is a bit less liquid than other major currencies, so once we do get the impulsive move, it tends to be even more rapid in this pair than many others as it takes less volume to move.

NZD/USD Video 26.6.17