NZD/USD Forecast July 31, 2012, Technical Analysis

By FXEmpire.com

NZD/USD had a very quiet session during the Monday trading day as the buyers took a break. The market is still currently above the recent breakout area of 0.8050, so we are still relatively bullish of it. The 0.80 level should continue to be supportive as well, so we think that some type of supportive candle in the area will be a good launching point to initiate fresh longs.

Do keep in mind that the ECB and the Federal Reserve are both expected to ease their monetary policy in the near future. This in theory should be bullish for the Kiwi dollar, but if they don’t do this, the Kiwi dollar will absolutely plummet. The recent surge has undoubtedly been in response to some type of extra liquidity being thrown into the markets, so this will have to be monitored.

As long as we are above the 0.80 level however, we can only buy this pair.