What's Next for NZDUSD?
As I said in the previous forecast of NZDUSD, the pair faced a firm barrier at 0.8100 and lost its upward momentum for several days. NZDUSD has then climbed again after bottoming at 0.7740, and it is aiming to test the 0.8100 resistance the second time.
So, what’s next for NZDUSD? To predict the future of NZDUSD, we have to look at the general tone of the forex market where EURUSD always plays a key role. I think EURUSD is not ripe enough for a sharp drop right in this week. The momentum of EURUSD still remains upward, and there will still be some room for EURUSD to push up a little bit. In a situation that NZD, AUD, CAD, GBP… have fallen so much against USD, any slight rise of EURUSD will provide a ground for these currencies to rally, perhaps very hard.
In conclusion, my forecast is that EURUSD will go up slightly, or at least move sideways this week. This brings a good condition for NZDUSD to break through the 0.8100 barrier.