NZD/USD Forecast November 27, 2015, Technical Analysis
The NZD/USD pair fell slightly during the course of the day on Wednesday, as we continue to hang about the consolidation area between the 0.65 level on the bottom, and the 0.66 level on the top. If we can break above the 0.66 level, this market will more than likely reach towards the 0.6750 level. Pullbacks at this point in time could be short-term buying opportunities as well, but given enough time we think that we need to wait on an impulsive candle more than anything else. Once we get one, the market should then show us which direction it wants to go but keep in mind that the New Zealand dollar is highly sensitive to commodity markets in general. They tend to be highly influential as the New Zealand dollar is essentially a “barometer” of the attitude of commodity markets in general.
We believe that a break down below the 0.64 level would be massive in its implications, as the market would then reach towards the 0.6250 level, and then perhaps the 0.60 level. Ultimately, the New Zealand dollar is one that we don’t necessarily like overall, but we have to admit that we are innocent somewhat stable in this general vicinity. It really comes down to which time frame you like trading, but if you are a shorter-term traded you may find short-term back and forth type of situational trades presenting themselves. Longer-term traders of course will need to see some type of impulsive candle as mentioned above in order to take advantage of what could be a larger move. At this point in time though, a larger move seems to be what the market is not doing, so patience will be needed.
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The US dollar of course is the strongest currency in the world at the moment, so having said that we are bit hesitant to start buying this pair, but do recognize that the short-term move to the 0.6750 level could be what happens next. Ultimately, we are sellers in general as the dollar is hard to fight against at the moment.
