The New Zealand dollar initially tried to rally during the session on Wednesday, but found the 0.7375 level to be too resistive. We pulled back, and then reach towards the 0.7350 level underneath. That’s an area where we are starting to see buyers return, as it was where we broke out of previously. US dollar weakness continues to be an issue, and I believe that the New Zealand dollar will grind towards the psychologically 0.75 level above. That is a major magnet for price, and of course is massively resistive. I’m looking to buy short-term pullbacks, and don’t have any interest in shorting unless of course we break down below the 0.73 handle. I believe that the market continues to be very volatile, but the US dollar has been sold off against most other currencies around the world, and I don’t think this could be any different in this market.
Choppiness
Looking at the markets, the choppiness should probably continue to be a mainstay of this market, as we continue to see quite a bit of back-and-forth with the US dollar in general. I think that the 0.73 level below is massively supportive, and essentially the “floor” in the market. I believe that the 0.75 level above is a target and of course should be massively resistive. If we can break above there, then the New Zealand dollar becomes a bit of a “buy-and-hold” situation. I have no interest in selling into we break down below the 0.7275 handle, which would be very negative and send this market down to the 0.72 handle underneath.
NZD/USD Video 20.7.17
This article was originally posted on FX Empire