New Zealand dollar rallies during the week but gives up much of the gains

The New Zealand dollar rallied significantly during the week but turned around and gave back most of the gains. By doing so, the market ended up forming a shooting star. If we can break down below the shooting star for the week, that would be very negative sign and could send this market looking towards the lows again. Looking at the charts, it looks very likely that the market should continue to be a main driver of this market. If we break down below the 0.70 level, we should then go to the 0.6850 level.

Otherwise, if we can break above the top of the shooting star the market could go much higher, perhaps reaching towards the 0.74 level above. I think this next week or two is going to be the telltale candle as to what happens next. Overall, this is a market that will be driven by risk appetite, keeping them very noisy. Remember that the New Zealand dollar is highly sensitive to commodities, and that of course is something that you should pay attention to as well. I think that the overall attitude should continue to be one that is moved upon by geopolitical headlines more than anything else in the short term. With the G7 meeting currently, headlines out of that meeting could move this market as well.