The New Zealand dollar has been very volatile during Thursday trading, as we initially fell, and then turned around to recover those losses. However, we break down even further from there, slicing through the 0.7250 level. There is a significant amount of support under here down to the 0.72 handle. With this being the case, I think that we will continue to see a lot of choppiness back and forth, as the jobs number will have a massive effect on risk appetite and the US dollar in general. The 0.73 level above is massively resistive, and if we can break above that level, the market should then go to the 0.7350 level. The volatility continues to be extreme, as the New Zealand dollar is the least liquid of the major currencies in the world.
Small positions
I believe in small positions currently, but essentially, we need to see some type of impulsive candle on at least the daily timeframe if not the weekly time frame to put serious money to work. I believe that the New Zealand dollar is can be difficult to trade with any size currently, so I will be paying attention, but more than likely I will be on the sidelines, waiting for some type of clear-cut signal to get involved. I think short-term back and forth scalping will probably be about the best this market offers as the RBNZ continues to look very neutral as far as monetary policy is concerned.
NZD/USD Video 07.7.17
This article was originally posted on FX Empire