The New Zealand dollar went back and forth during the trading session on Tuesday, as we continue to hang about the 0.6925 level. I think there is a certain amount of support extending down to the 0.69 level, so I need to see this market break down below that level to start selling again. I do think that eventually the sellers take over though, and should send this market back down to the 0.68 level. Any rally at this point in time should find plenty of sellers above, especially near the 0.70 level which has been important on longer-term charts. The New Zealand dollar is highly sensitive to risk appetite, so keep that in mind as commodity markets will typically influence where the kiwi dollar goes. In general, the market has been very bearish as of late, and with the election of a Labour Party prime minister, a lot of traders are concerned about expanded spending in New Zealand.
Technically speaking, the 0.69 level is the middle point of an overall consolidation area, between the 0.70 level on the top, and the 0.68 level on the bottom. I have no interest in buying, and believe that it’s not until we close above the 0.70 level significantly that I could consider doing so. I am a seller, simply waiting for signs of exhaustion and a roll over to short. One of the biggest problems I think they have in this pair right now is the inability of the United States Congress to pass tax reform, and that has been weighing upon the value the greenback. Longer-term though, I still favor the downside unless of course something changes fundamentally. Over the next couple of days, it could be volatile, but I do think that it’s only a matter of time before the sellers take over.
NZD/USD Video 29.11.17
This article was originally posted on FX Empire
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