The New Zealand dollar has certainly found itself on the back foot recently as noted yesterday on the break of support. That theme continued today as we are now racing towards our first bear target of 0.70. Any break below that could signal serious trouble for the NZD/USD, as it is massive support.
If you feel that going long is wise, waiting until we get a signal at that level is absolutely imperative. A bounce from there could have us retesting the 0.7350 area. Any new shorts should only be applied after a small bounce on the shorter time frames.
More March 18, 2011 Technical Analysis:
