NZD/USD Price Forecast December 6, 2017, Technical Analysis

The New Zealand dollar rallied significantly during the trading session on Tuesday, slamming into the 0.69 resistance barrier. That’s an area that has been massively resistive recently, and by doing so it shows just how choppy this market remains. The New Zealand dollar is the epitome of a risk asset when it comes to Forex trading, while the US dollar remains a beacon of stability. However, one of the things that is coming into play is the excess spending that is expected out of New Zealand after electing Labour, and of course the tax reform bill coming out of the United States which in theory should have the exact opposite effect as it is stimulative for the US economy.
Because of this, I think that we will eventually see sellers every time we approach the 0.69 handle, and even if we break above that level I think that the 0.70 level above is even more resistant. The market continues to be very noisy, but I think favors the downside in general. If we managed to break down to the 0.68 handle, remove below there should send this market to much lower levels, perhaps the 0.65 handle. A break above the 0.70 level would negate the downtrend, and perhaps send the market looking towards the top of the overall consolidation over the last several months, meaning that we could rise as much as the 0.7250 level, possibly even the 0.750 level after that. However, I believe there is much more momentum to the downside in this market as global growth seems to be taking a bit of a hit.