NZD/USD rose during the Monday session as traders bought the Kiwi around the globe. The pair looks very bullish at the moment, but the 0.79 to 0.80 area should be resistive going forward. Because of this, we are not willing to buy at this point, even though the charts do look healthy. In fact, with the headline risks that are out there, we are more comfortable selling the New Zealand dollar than buying it.
However, this area isn’t one of our major support or resistance areas, so there is no real trade. A test and failure of the 0.79 to 0.80 level would have us selling this pair for a quick gain down to about the 0.75 level. Of course, if we can close above that level – we have to rethink the direction of the pair and perhaps buy it as it would show a serious attempt to regain the highs. In the mean time, we are watching and waiting to see what happens at 0.79 to 0.80.
NZD/USD Forecast January 10th, 2012, Technical Analysis
Originally posted here
