NZD/USD Forecast June 23, 2017, Technical Analysis
The New Zealand dollar exploded to the upside during the day on Thursday, breaking above the 0.7250 level. We reached all the way to the 0.7270 level, but then fell back to the 0.7250 level where we would find buyers reenter the marketplace. The 24-hour exponential moving average continues to be supportive, and with this in mind, I believe that the New Zealand dollar will continue to attract buyers. However, we may need to pull back a little bit to find those buyers. I believe that the target is the 0.73 level above, and if the commodity markets can perk up a little bit, that will help the Kiwi as well. Because of this, I am a buyer and not a seller, but I think that in general we are consolidating overall, between the 0.72 level and the 0.73 level above. We are essentially just above “fair value”, and that means that the buyers are slightly in control. I think that a break above the 0.73 level has this market going much higher, but it will take a while to happen.
Strongest of the commodity currencies
Ultimately, the New Zealand dollar looks likely to be the strongest of the commodity currencies, and I think that will continue to be the case. Ultimately, I am a buyer and not a seller, but I do recognize that a breakdown below the 0.72 level would be very negative and perhaps would change the entire Outlook. Longer-term, I still believe that the 0.75 level is the longer-term target. It might take quite a bit of time to get there, but longer-term traders seem to be holding out for that to happen, and as a result I think that the market will continue to favor buying dips soon.
NZD/USD Video 23.6.17
This article was originally posted on FX Empire
