NZD/USD Price Forecast December 4, 2017, Technical Analysis

The New Zealand dollar was very explosive during the trading session on Friday, as the US dollar got pummeled on bad news for the White House. · FX Empire

Christopher Lewis

Updated Fri, Dec 1, 2017, 10:14 PM

The NZD/USD pair initially went sideways during the trading session on Friday, but found enough support near the 0.6815 level to rise slowly. However, the General Flynn announcement that he was willing to work against the White House sent the US dollar lower in general. That of course has had a far-reaching effect around the world against most currencies, with the New Zealand dollar not being any different. However, the 0.69 level above is resistive, and it extends all the way to the 0.70 level after that. It’s not until we break above the 0.70 level that I would be interested in buying, and I think it’s only a matter of time before we get some type of exhaustive candle that I can take advantage of.

The 0.68 level underneath is massive support, and if we can break down below there after a rollover it’s a longer-term “sell and hold” opportunity. Currently though, I’m just looking for an opportunity to sell a market for me that has a massive amount of negativity around it in general, as people were concerned about the Labour Party spending money in New Zealand. At the same time, if the US Congress can get it together and sign a decent tax bill, that should help the US dollars well. The recent rally though course has been based upon a fluid situation, and quite frankly is probably going to end up being an overreaction. Stepping out of the way and letting the market calm down is the best way to trade either way, and therefore think we are better off waiting for a bit of sanity to come back.