NZD/USD Price Forecast – bullish pressure continues

The New Zealand dollar has bounced over the last couple of days, showing the 0.70 level to be massive support. If we can break above the 0.7050 level, the market could go higher, and should effectively go looking towards the 0.72 handle. I think that the market should continue to offer buying opportunities on dips, as there is so much in the way of support at the psychologically important 0.70 level. Remember, this pair is very sensitive to risk appetite and of course the commodity markets, as New Zealand is an agricultural commodity exporter to Asia.

If we were to turn around and break down below the 0.6975 handle, that would be very negative sign and perhaps in this market lower. However, I think that it’s very unlikely we see this in the short term, and I think that it’s only a matter of time before we do get the breakout to the upside. This is further confirmed by the weekly charts of the Australian dollar, which of course tends to move in the same way as the New Zealand dollar. I think short-term pullbacks will be buying opportunities for those who are comfortable with waiting on the move, otherwise you will have to wait for the breakout. If we did break down though, we could go looking towards the 0.68 level again, which is a major support on a longer-term consolidation rectangle.