By FXEmpire.com
The NZD/USD pair fell after initially trying to surge during the Tuesday session. Although it didn’t break the bottom of the hammer from Monday, at the time of this recording it is testing it. This does look very weak at this point in time, and if 0.79 gives way – we could see a run to the 0.78 level. Below there, we become very aggressively short of this pair as it would suggest commodity markets are about to take ahead. With the global economy slowing down, this is the most likely of scenarios going forward. However, we should admit that there is quite a bit of support being between here and the 0.78 level, so those of you that are more conservative may will wait until the daily close below that level in order to sell.
This would in fact have a lower low in the equation, which of course is the beginning of a new downtrend. It does look at this point in time though, that the 0.80 level is going to hold as resistance in the near term. We prefer selling this currency pair, however there are easier trades out there at the moment.
Click here for further NZD/USD Forecast.
Originally posted here
