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NZD/USD Forecast September 25, 2017, Technical Analysis

Christopher Lewis
Updated

The New Zealand dollar initially fell on Friday, but bounced a bit to show signs of support again. Because of this, I think that the market is going to continue to try to grind its way to the upside, but obviously with a certain amount of volatility. Ultimately, this is a market that I think will be highly influenced by the overall risk appetite of the world. The tensions between North Korea and the United States continue to flare up, and that could have people selling this pair. Alternately though, if the commodity markets look healthy, this market should continue to go higher. Remember, the New Zealand dollar is highly influenced by commodity markets, and that should continue to be one of the major driving forces of this market. Because of this, I think that we will get a certain amount of volatility but I think that the markets will look at the longer-term attitude of markets.

Ultimately, I believe that the 0.74 level above is the target if the buyers get away, but on the other hand, if we break down from here I think the market should then go to the 0.72 handle. I believe that the overall uptrend is still very much intact, but we have certainly seen a significant amount of trouble as of late. With the Federal Reserve looking likely to clean its balance sheet out, that does put a bit of bullish pressure on the US dollar, but ultimately, I think that as markets digest this news in a positive light, eventually the New Zealand dollar will come into vogue yet again. Pay attention to the New Zealand elections over the weekend, that could influence this currency as well. Because of this, I think we will continue to see choppiness but I still favor the upside in general.

NZD/USD Video 25.9.17

This article was originally posted on FX Empire

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