NZD/USD Price Forecast November 27, 2017, Technical Analysis

The New Zealand dollar went back and forth during the trading session on Friday, testing the 0.69 level above. That’s an area that has attracted a lot of attention lately, as we have failed to break above there significantly several times. However, even if we break above the 0.69 level, I think that the 0.70 level above is even more resistive. I’m looking for some type of exhaustion to take advantage of and start shorting the kiwi dollar as it has been so bearish as of late. I think that the Labour party election will continue to weigh upon the New Zealand dollar as people are concerned about the spending of the New Zealand government. In fact, it’s not until we break above the 0.70 level that I would be convinced to start buying.
I suspect that we are trying to build up enough momentum to finally break down below the 0.68 handle, which of course is a very negative sign. At that point, I anticipate that the New Zealand dollar goes looking for the 0.65 level underneath there, and perhaps even lower than that. The kiwi dollar should continue to be very volatile, regardless of which direction we go. I do not believe that we will have an easy time of breaking above the 0.70 level, so I’m currently looking for selling opportunities more than anything else. Remember, the New Zealand dollar is highly sensitive to not only risk appetite, but also commodity markets in general. If they struggle, the New Zealand dollars going to find a very hard market to deal with, and with the massive selloff that we have seen of late, I suspect that the momentum still favors the downside and therefore I like selling rallies more than anything else.