The NZD/USD pair initially fell during the week, but then rose to break above the 0.75 level at one point. It looks very likely that we will continue to try to go to the upside, but a pullback may be necessary as the 0.75 level has a certain amount of psychological resistance built in. I believe that a break above the top of the weekly candle should send this market looking towards the 0.7750 level, and the pullbacks are buying opportunities. Ultimately, I believe that the 0.7350 level underneath should be the floor. Ultimately, this is a market that I do like, but we need to see in stock markets and commodity markets to rally as the New Zealand dollar tends to be very sensitive the risk appetite in general. Given enough time, I do think that we see higher levels, so you will have to be patient but I believe in buying on the dips when it comes to the NZD/USD pair.
Buying on the dips
I think buy on the dips is the mess strategy, but you may have to do it in small increments as the volatility could pick up. If that’s the case, then simply adding as the trade goes in your favor is probably the best way to go as you don’t high up a bunch of money in margin when the trade is ready to go anywhere yet. Ultimately, this is a market that should continue to look bullish, but I also recognize that we will have some shakeups from time to time. Ultimately, this is a market that I believe has a bit of a built-in bid as the US dollar is also being punished due to the Federal Reserve and its dovish stance that we have seen as of late.
NZD/USD Video 31.7.17
This article was originally posted on FX Empire