The NZD/USD pair fell on Friday, but managed a bounce later in the US session. The bounce makes us believe that the Kiwi could bounce back into the 0.78 – 0.82 levels. The area could continue to be consolidative, and if it is – this could be a good market for scalps. The Kiwi is highly sensitive to headline risk, so any bad news could send it much lower. If we can break below the 0.7780 or so, we think the pair can run to 0.75 and then perhaps 0.70 over the course of a couple of months. Buying isn’t easy until we clear 0.82 or so.
