NZD/USD Forecast September 28, 2017, Technical Analysis

The New Zealand dollar went back and forth during the day on Wednesday, testing the 0.72 level for support. Ultimately, we broke out to the upside, and it looks likely that we will continue to go higher. I think that the market should continue to be volatile, but is the “risk on” trade comes back into vote, the market should continue to favor the kiwi dollar. Ultimately, I think that the market will eventually go higher, perhaps reaching towards the 0.7350 level. If we break down below the lows of the session, then I think we continue to drift towards the 0.71 handle. Ultimately, this is a “risk on/risk off” trade.
Volatility continues to be a major issue
The markets should continue to be very difficult, as there is a bit of liquidity issue when it comes to the kiwi dollar, and then of course the back and forth waffling of the Federal Reserve and its directionality of the economy is not helping either. I think the best thing you can do is simply look at this market and recognize that the technicals are probably the easiest way to play this market. Right now, we have broken to the upside, and it looks as if we are going to continue to find buyers on dips. However, we also know that there is a significant amount of headline noise out there that could turn things around immediately. Small position sizes should continue to be the best way to play this market, as the volatility could cause major issues. I have no interest in trying to overplay this market, but it does look like the buyers are to come back in the short term, and at least until we get to the 0.73 level over the next several hours, if not days.