NZD/USD Price Forecast – dips only to find support on Tuesday

The New Zealand dollar fell initially during the day on Tuesday, reaching towards the 0.70 level underneath, and then bouncing again as that level continues to create a bit of a reaction. I think that the market will eventually go looking to break above the short term consolidation area that we have been in, extending to the 0.7060 level. If we do get above there, then I think the market is free to go to the 0.72 level above. I think that the market continues to see a lot of noise in general, but it makes sense that we rally based upon the fact that we had gotten a bit too far to the downside on the longer-term weekly consolidation area. There is much more room to the upside, but keep in mind that the New Zealand dollar is highly sensitive to the global risk appetite.

I think if things calm down between the G7 nations, it’s likely that we will continue to see this market rally. Now that we have gotten the meeting between the United States and North Korea under control and finished, that geopolitical event no longer factors in the what’s going on. The market continues to be very noisy, but I believe that we are trying to build up the necessary momentum to finally break out to the upside as the last week has been very quiet. That makes sense, we had a massive selloff so there needs to be a bit of confidence building.