New Zealand dollar rallies on Wednesday

The New Zealand dollar has rallied a bit during the day on Wednesday, pulled back, and that started to rally again. The 0.7050 level has offered a bit of resistance, and I think eventually will be overcome by the bullish pressure. The markets continue to be very noisy in general though, mainly because we have so much in the way of geopolitical concerns and of course the potential of more trade tariffs around the world.

I believe that the 0.70 level underneath should offer support, and I think that the market will continue to respect that level as important. That doesn’t mean we can break down below there, and I believe that the support extends as low as the 0.6950 level, but quite frankly it looks as if the buyers are going to be in control and continue to take advantage of dips as a bit of value. Beyond that, I look at the market is one that is trying to get to the 0.72 level, which is the next major resistance barrier.

Overall, if we can stay out of some type of geopolitical noise, the New Zealand dollar should continue to drive to the upside. After all, we had reached reasonably close to the 0.68 level underneath, which has been the bottom of the overall longer-term consolidation. I think that as long as we can stay above the 0.6950 level, the market should continue to be at least somewhat bullish. In general, I think things will be noisy, so keep that in mind and keep your position size a bit small.