- The New Zealand dollar initially rally during the day on Thursday but gave back gains to show signs of hesitation.
- By doing so, we are forming a bit of a shooting star, as we are approaching the upper half of the overall consolidation range that we have been in for what seems like a lifetime.
- We have been stuck between the 0.59 level in the bottom, and the 0.61 level at the top for the last couple of months, as we continue to be very choppy and general.
Technical Analysis
At this point, the market is very obviously sideways and neutral, which is interesting considering that the US dollar has struggled against most other currency. Because of this, if the market start buying the US dollar again, it’s very likely that the New Zealand dollar, as well as the Australian dollar, will struggle drastically due to the fact that they have underperformed most other currencies already. In an environment where the US dollar is a week, the antipode currencies have both had major issues, as they have been essentially flat. If we start to see a shift in the overall attitude of the markets, this might be the first place I want to start selling, right along with the AUD/USD pair.
Top Forex Brokers
In the short term, I believe that the market is probably going to go looking toward the 200 Day EMA near the 0.59 level, which just gives it more efficacy as support. The 50 Day EMA is sitting at the 0.5984 level, so that could be a bit of support between here and there.
On the other hand, if we do rally from here it’s not until we get a daily close above the 0.61 level that I’d be interested in trying to buy some type of major breakout, and I would need to see the US dollar shrinking against everything else in the Forex world as well.
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