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The NZD/USD pair had a fairly volatile session during the Tuesday trading hours as the Federal Reserve Chairman testified in front of the U.S. Congress. Any hint of quantitative easing would have certainly weakened the dollar, and as he did not explicitly give those signals, we had very mixed markets all around the board.
Even after all this being said, the New Zealand dollar did manage to finish the day on a positive tone, but just underneath the 0.80 level. It is the 0.80 to the 0.8050 area that we are focusing on, as we think any move above that is extremely bullish. At that point in time, we would not hesitate to be long of the Kiwi dollar. On the downside, we see 0.79 and 0.78 as both been rather supportive, so we're going to play in a little bit more cautiously in this market and wait until we close below the 0.78 to start selling. In the meantime, we expect a lot of sideways motion with choppiness.