NZD/USD rose rapidly on Tuesday as the latest round of “hopium” hit the markets. The traders all around the world suddenly seemed convinced that since the Spanish bond yields went down during the Tuesday auction that things were getting better. However, we have seen this movie before, and know that rallies in December aren’t likely to be trusted anyway. The low volume allows for exaggeration, and we are very bearish on risk in the markets. The Kiwi is a “risky asset”, and as such – we aren’t looking to buy at this point. We instead will look for rallies to fade on signs of weakness. The 0.78 level looks like a great place to find a selling opportunity.
NZD/USD Forecast December 21, 2011, Technical Analysis
Originally posted here
