The New Zealand dollar has initially tried to rally during the week but rolled over rather significantly and reached down towards the 0.72 level. The 0.72 level has previously been supported in this pair, and I think that it could continue to be. However, the market is closing towards the end of the candle on Friday, and that is a very negative sign. I also think that if we were to break down below the 0.7150 level, the market should continue to go much lower, probably down to the support level at the 0.68 handle. That’s an area that has been supportive more than once and could form yet another leg down and then up in consolidation that we have been in for 2 years. I think a breakdown is probably the easier trade to take, but it needs some type of headline to move the market to the downside as far as risk appetite is concerned.
I believe that the 0.68 level should hold support though, so I think it’s only a matter of time before the buyers get involved. The market has several resistance barrier’s above, so I think that buying opportunities are to be found below, but you will need to be patient enough to take advantage of them. In the meantime, I suspect that we are going to try to break down, and that could be a quick trade for a couple of weeks for the longer-term inclined trader. However, keep an idea as to what the risk appetite is around the world, as it will directly influence what’s going on here.
NZD/USD Video 23.04.18
This article was originally posted on FX Empire