NZD/USD fell on Wednesday as traders sold off riskier assets for most of the day. The stock markets fell in many places, and commodities fell for several hours. However, there were signs of life once it was just the Americans trading. This pair is highly sensitive to risk appetite, and as a result we aren’t overly keen on it at the moment.
The 0.80 level above would have to be broken above on a daily close to buy, as we see the 0.79 to 0.80 area as strong resistance. The downside is protected by a gap that sits just below the 0.75 level. The gap hasn’t been filled yet, which is odd – and highly rare. Because of this, we feel sooner or later there is a strong move down. None the less, there is nothing on this chart that makes us want to sell yet. We prefer selling a little closer to 0.80 on signs of weakness if offered.
NZD/USD Forecast January 5th, 2012, Technical Analysis
Originally posted here
