NZD/USD Price Forecast August 1, 2017, Technical Analysis

The New Zealand dollar gapped lower at the open on Monday, breaking below the 0.75 handle. We then fill the gap, and then fell from there, testing the 0.7450 support level. As I write this, we have bounced back to the 0.75 handle, so I think we’re going to do a bit of consolidating in the short term, as the US dollar weakness should continue to put a bit of a floor in the New Zealand dollar. Ultimately, I think that this is a market that’s probably best to be avoided, unless of course you are short-term range bound trader, then it’s the perfect type of market to be involved in. I think that the overall uptrend should continue to go forward, but I think we are currently trying to build up enough consolidation and momentum to go higher. Ultimately, the 0.74 level underneath should continue to offer a “floor” in the market, as the area featured quite a bit of noise in the past.

Buying a break above 0.7550

If we can break above the 0.7550 level, the market should continue to go much higher, perhaps reaching towards the 0.77 handle. Ultimately, I think that a break above that level should send the market looking for pullbacks as value. I think that the market should continue to go much higher, and given enough time if the commodity markets can continue to pick up, that should help the New Zealand dollar as well. The US dollar has been very soft, and that also adds a floor. Ultimately, I am not interested in selling this market, and if I was forced to place a trade, it would most certainly be to the upside, and I would be more than willing to hang on to the trade, but currently I think that the choppiness might be difficult to deal with.

NZD/USD Video 01.8.17