NZD/USD Forecas Today - 28/10: NZD Tests Support (Chart)

(MENAFN- Daily Forex)

• In my daily analysis of the NZD/USD pair, we have seen the New Zealand dollar drop below the crucial 0.60 level, only to turn around and show signs of life.
• By doing so, this suggests that the market is more likely than not going to continue to fight in this area, and it is probably worth noting that we were heading into the weekend, and it looks as if people are not willing to take a ton of risk at this juncture on either currency.

That being said, interest rates in the United States have been spiking for some time, and I think this is got a scenario where traders continue to see this as a major driver of where the US dollar could go higher.

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All things being the same, I think that we are probably a little overdone, but this is not going to have me buying the New Zealand dollar anytime soon. All things being equal, if we do rally from here, I think any signs of strength will probably be squashed, and a rally at this point in time should end up being a selling opportunity for this pair so that we can pick up“cheap US dollars.”Technical Analysis

The technical analysis for the NZD/USD currency pair is absolutely horrific. The 0.60 level of course is a major round figure, and I think that will continue to be of some importance, but quite frankly the US dollar has been like a wrecking ball against almost everything else.

EURUSD Chart by TradingView

The New Zealand dollar is not something that I would look to short at this point, due to the fact that the market is so oversold. However, I don't have any interest in buying this pair just because it has“gotten too cheap.” Quite frankly, this pair drops I will more likely than not short other currencies against the US dollar.

However, we do bounce from here, the 0.61 level should be a significant amount of resistance just waiting to happen, as we have the 200 Day EMA sitting there, which is of course a technical indicator that a lot of people will be paying close attention to. If we can break above that, then the market could go much higher, but right now that is very unlikely.

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