NZD/USD Forecast September 29, 2017, Technical Analysis

The New Zealand dollar initially tried to rally on Thursday but then pulled back to reach towards the 0.7175 level. We have found support there again, and how bounce. I believe that we are in the consolidation area right now, and that this market is probably going to be relatively choppy and in a small range. If we can break above the 0.7240 level, at that point I am much more comfortable buying, as it would show yet another attempt to build up the bullish pressure. I also believe that if we break down below the 0.7175 level, the market will probably go lower, perhaps reaching towards the 0.71 level in the short term, and then eventually the 0.70 level.
Keep in mind that the New Zealand dollar is highly influenced by commodities and the overall risk appetite of markets, and this of course has a major influence on where this market goes next. This market should continue to be noisy, but if we were to break out to the upside, this would be essentially a larger “W pattern” on the hourly chart which of course is a very bullish sign. Longer-term, I believe that the New Zealand dollar rallies but I don’t think that the market is in the mood to start pushing to the upside quite yet. My longer-term target of 0.75, but I recognize that we may have to visit the 0.70 level first. Pay attention to the recent consolidation of the last couple of sessions, a break in one direction or the other should tell you which way to start trading next. The New Zealand dollar tends to be a bit noisier than the other major currencies, and right now it certainly is living up to its reputation.