NZD/USD Forecast August 7, 2012, Technical Analysis

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The NZD/USD pair had a slightly bullish session on Monday as traders bought into the “risk on rally” again, but failed to make any significant progress at the end of the day. We find the 0.82 level as being resistive, and this suggests that perhaps the Kiwi dollar will struggle going higher at this point in time. It’s been a hard fight to get above the 0.81 level, and there just may simply be a lack of buyers to keep pushing it at a substantial rate.

The day formed a shooting star, and it is entirely possible that we see a pullback down to the 0.81 level, or even the 0.80 level. We do think that the 0.80 level will be extremely supportive oh, and would not hesitate to buy supportive action at this point in time. We don’t like buying at this price; we think that a pullback is necessary as it struggled so severely. We will be watching this pair, but will need to see a nice hammer, bullish engulfing, or other such candle in order to get involved to the upside. As for selling, we need to see a nice long red candle close below the 0.80 handle.

NZD/USD Forecast August 7, 2012, Technical Analysis

NZD/USD Forecast August 7, 2012, Technical Analysis

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About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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