By FXEmpire.com
The NZD/USD pair fell during the Thursday session, as the “risk off” trade came back into play. It should be noted however that the 0.79 level came in at support and this is significant as it is the start of a 100 pip zone of support down to the 0.78 level. This area looks to be rather strong, and it is the area that will have to be overtaken in order for the sellers to gain the upper hand for any length of time. It is below there that we become very aggressive on the short side in the Kiwi dollar pair, but until then we can only trade the short term setups.
The pair does look like it once did trying to bounce from here, but we feel that any gains will be short-term at best. There simply far too many headline risks out there, and as such we think that selling this pair ultimately will be the better play. Again though, we are in a fairly tight consolidative range so we may forego any trades until we can break below the previous mentioned support. As for buying, anything above the 0.8050 on a daily close would have us long of the Kiwi dollar.
Click here a current NZD/USD Chart.
Originally posted here
