The New Zealand dollar has pulled back slightly during the trading session on Monday, reaching down towards the 0.7333 handle, but found enough support to turn things around and rally a bit. I believe that the market will continue to find buyers on these dips, and I think it’s only a matter of time before the risk appetite sends the New Zealand dollar much higher. However, we are heading into an area that has been noise in the past, so I don’t think that it can be very easy to make the move. Ultimately, I think that the market probably goes looking towards the 0.74 level above, and then the top of the resistance barrier, the 0.75 level.
Pullback should continue to be buying opportunities, but I believe that you are probably better off jumping into this market slowly, as the volatility could be very difficult. I think that the market breaking above the 0.75 level would be a massive sign of bullish pressure, and at that point I think it would be more of a “buy-and-hold” market. I think that the 0.7250 level has now become the “floor” in the market overall, and if we were to turn around and break down below that area, I would have to rethink the entire situation. Until then, I suspect that pullbacks are going to be value opportunities that traders will be taking advantage of.
NZD/USD Video 16.04.18
This article was originally posted on FX Empire
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