NZD/USD Price Forecast December 26, 2017, Technical Analysis

BREAKING NEWS

US, China agree to slash tariffs to 10% for 90 days

The New Zealand dollar has been rather quiet over the last couple of sessions, but then again it makes sense as the liquidity has been thin due to the holidays. However, we are at interesting levels, that could signal where we go next longer term. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:42 PM

The New Zealand dollar drifted a little bit to the downside during the trading session on Friday, as traders were focusing on holidays, and not currency markets. The previous uptrend line on the weekly chart is just above, and it is of course offering a bit of resistance. A break above that level should send this market higher, perhaps back to the 0.75 handle as it is the top of the overall consolidation that we have seen most of this year. Alternately, if we break down from here, we could drop to the 0.68 level underneath there. If the 0.6950 level being broken to the downside happens, I think at that point it’s time to start shorting again.

I believe that we will continue to see a lot of noise in the market, and therefore you should be careful with your position size, as the noise could make it very uncomfortable to hang onto a trade. Longer-term, we have been consolidating between the 0.68 level on the bottom and the 0.75 level on the top, we have certainly seen a downward bias over the last several weeks. I think a lot of people are concerned about the New Zealand government spending more, which of course brings down the value of the currency. Alternately, if we get a “risk on” environment, you might see the New Zealand dollar rally. I think the next couple of sessions a very crucial, but I would wait for a daily breakout of the short-term range to put money to work.