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The NZD/USD pair fell during the week as the bulls were turned away at the 0.83 level yet again. This level looks to be very resistive, and as such we find it difficult to think that the Kiwi dollar will breakout anytime soon. Also, it should be noted that the weekly bar filled for the first time in three weeks, and as such it does look like a pullback to the 0.80 level could be about to happen.
If it does happen, this hardly represents some type of breakdown in the New Zealand dollar, rather a much-needed pullback as we continue to climb higher. The Federal Reserve continues to pump liquidity into the markets, and as such we think that commodities should do well over time. This of course favors the Kiwi dollar as well, and as such we do think ultimately this is a buy only type of market. We are looking for supportive candles which to do so, and until then we will be flat.