NZD/USD Price Forecast November 28, 2017, Technical Analysis

The New Zealand dollar shot higher during the day on Monday, slicing through the 0.69 handle. By doing so, we have cleared a significant resistance barrier on the short-term charts, but quite frankly we are still in a longer-term downtrend. I believe that this gives us an opportunity to look for selling at higher levels, and for short-term traders to take advantage of the volatility to the upside. However, I am a much more likely to go looking for selling positions closer to the psychologically important 0.70 level above, which has been important more than once on the longer-term charts. I recognize that the US dollar is having some struggles during the day, but given enough time I believe that the New Zealand dollar will return to the downside that we had seen recently.
Alternately, if we break down below the 0.69 level, the market probably drops to the 0.6850 level, and then eventually the 0.68 handle after that. A breakdown below the 0.68 handle should send this market to the downside rather quickly, as it would be a significant breakthrough of support. At that point, I anticipate that the New Zealand dollar would go looking towards the 0.65 handle next. The market continues to be very volatile, and of course the New Zealand dollar is probably the least liquid of the major currencies. Because of this, volatility is to be expected and of course we have the usual issues when it comes to liquidity, and beyond that, issues with any type of trouble in the commodity markets. Ultimately, I am bearish of this market, but I do recognize we may have a little bit of upside between now and the selling opportunity. Smaller position sizes are recommended currently as we sort things out.