Forex Marketz Daily Forex News – Fully Markets Update
With today being nonfarm payroll Friday, it’s very likely that we will see a lot of movement in the Forex markets. The Americans are expected to have had 240,000 jobs added to the payroll during the month of February, so that of course is the barometer from which we will measure the announcement.
Looking at the New Zealand dollar, you can see that we have in fact broken to the downside rather significantly during Thursday trading, but it is not until we get below the 0.7450 level cleanly that, it looks as if the market is going to continue even lower. I believe that the long-term downtrend will continue, and it appears that the market is expecting to see US dollar strength going forward.
Remember, the New Zealand dollar is highly leveraged to the commodity markets, and not just a particular commodity market. It’s more or less a barometer on the risk appetite of commodity traders in general. So if the majority of commodity markets fall, so does the New Zealand dollar typically. Because of this, we will also have to watch various commodity markets at the same time, but realize that this market is setting up for the continued downtrend.
If we get that move lower, I anticipate that we will then go to the 0.73 handle, and then the 0.7150 handle. Below there, we could very easily find the 0.70 handle, and then the 0.68 handle, which is where the Oil Bank of New Zealand said that they believe “fair value” is found in this pair. Rallies at this point in time will still be treated with suspicion, and I would look for soft candles above in order to sell, especially near the 0.7650 handle.
