NZD/USD fell on Thursday after first rising due to the market perceiving the EU rate cut as a good sign. The lack of bond buying in the statement however had the markets concerned, and we fell from the “risk on” trade every since then. The pair is very risk-sensitive, and should continue to be at the whim of the headlines coming out of Europe over the next couple of days. With the outlook of the EU summit becoming more and bleaker, we think that the breaking of the bottom of the recent range on Thursday will be the start of a move back down to the gap from two weekends ago at the 0.74 level. We won’t buy this pair until we can get above the 0.80 level.
NZD/USD Forecast, Dec. 9th, 2011, Technical Analysis
Originally posted here
