NZD/USD Forecast for the Week of February 13, 2012, Technical Analysis

By FX Empire.com

NZD/USD fell during the week as the risk appetite fell due to fears coming out of Europe again. The Kiwi is one of the most risk sensitive currencies out there, and as a result will almost always sell off when bad news hits the wires. The 0.8350 area provided resistance during the week, and Friday saw a pullback in this pair. The pair is still very bullish though, and we don’t see it as bearish until we get below the 0.80 level. In fact, we think that the 0.82 level could be supportive, and the 0.80 level most certainly is. We are buying on supportive price action at either one of those levels, and won’t sell unless we get a weekly print below the 0.80 level.