By FXEmpire.com
The NZD/USD pair rose during most of the session on Tuesday as the bullish traders continued to try to push this pair higher. The 0.79 level is acted as a bit of support and one would have to think that it extends all the way down to the 0.78 level as well. With this in mind, we are cautiously optimistic in the short term but do believe that in the long term this pair can fall. This isn’t based upon anything in New Zealand, and is simply based upon the rest of the world. As the commodity markets fall due to lack of demand, the Kiwi dollar will suffer as it is so highly correlated to commodity prices. We favor selling this pair, but will not do so until we see a daily close below the 0.78 level. Rallies could be faded as well, but it must be said that it is the riskier of the two scenarios.
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Originally posted here
