NZD/USD Price Forecast November 20, 2017, Technical Analysis
The Kiwi dollar has broken below the 0.68 handle during the session on Friday, but did bounce a bit to pop above that level again. Ultimately though, this is a very negative candle that we are forming for the day, and I think that it’s only a matter of time before the sellers get into the market, as the New Zealand dollar is awfully soft, and of course the commodity markets aren’t helping either. The 0.69 level above should be a bit of a “ceiling”, and quite frankly I don’t think we are going to getting rid near there. Look at this chart from a longer-term standpoint, breakdown below the 0.68 level signifies that we are ready to make a move lower. The US dollar course has continued to be bid of as we are expecting tax reform to eventually come out of Washington DC, and that should continue to have people buying the greenback against commodity currencies.
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If we can make a fresh, new low, the market then should go looking towards the 0.65 handle next. I believe that the New Zealand dollar is in a massive downtrend that should continue, so selling rallies continues to be the best way. If we did somehow break above the 0.69 level, then I think the 0.70 level above would be targeted next. It’s not until we break above there that I would consider buying this pair, so being patient and waiting for and exhaustive candle is my plan of attack, as I believe that the New Zealand dollar continues to struggle going into the next several weeks, and possibly even the beginning of next year. With the negativity, it’s a most impossible to fight this type of momentum. Therefore, I won’t.