The market will likely see a level above 0.65 as a potential barrier, so keep an eye on what’s happening globally. NZD/USD moved significantly lower during Thursday’s trading as we saw a decrease in risk appetite. Finally, the market is likely to look at the 200-day EMA closer to the 0.6250 level. That’s an area where we’re seeing some support, but I also understand that we haven’t cracked it yet, so it’ll be interesting to see if that’s true. If not, we could start to see a pretty drastic appreciation of the US dollar against most currencies. Advertisement Test your technical skills now! OPEN A FREE DEMO ACCOUNT At the end of the day it’s a situation where I believe you have a risk on/risk scenario. If risk appetite continues, there will certainly be a lot of negativity around the NZD, as it is very sensitive to commodity markets in general. The market will likely continue to view the level above 0.65 as a potential barrier, so keep an eye on what’s happening globally. If we continue to see a lot of negativity in commodities and equity markets, it is very likely that the NZD will fall with them. Looking for opportunities to short the market Looking at this chart, the 200-day EMA below offers an area of interest, but if we were to break below that, we could likely fall to the 0.62 level. up to the 50-day EMA, which is closer to the 0.6150 level. At the end of the day, it’s a market that I think is going to be very noisy as we approach the end of the year and liquidity will obviously start to decrease. It looks like the US dollar is recovering again, so if we can break below the 200 day EMA, you should have plenty of opportunities for short signs of exhaustion in this market. On the other hand, if we were to turn above the 0.65 level, that would be a very bullish sign and could send the NZD much higher. Jerome Powell said yesterday that tight monetary policy will continue, and it looks like the market has finally decided to believe him again, at least for now.