By FX Empire.com
The NZD/USD pair rose for the week, and continued its massive rally. However, at this point in time it looks much overbought, and as a result we are waiting to see if we can get a pullback. The pullback needs to stay above the 0.80 level however, as that is such a significant level. Perhaps a week or two or rest is what this pair needs as it has been so strong lately.
The pair should only be bought though, and we are not willing to sell it because of the extreme bullishness the pair has shown over the last two months. Because of this, we are in a “wait and see” mode as we look for that nice pullback to get involved from the long side. Selling isn’t possible until we get a weekly close sub-0.80 or lower.
NZD/USD Forecast for the Week of February 6, 2012, Technical Analysis
Originally posted here
