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The NZD/USD pair rose during the session on Thursday as we pierced the 0.82 handle again. However, the selling off of this pair towards the end of the day produced a shooting star. This looks more and more like a currency pair that once to grind sideways in a very tight range. Although we know that the odds favor a continuation of the move higher, we are not willing to take that risk at this moment.
In other words, we think this pair could very easily break north, but it is going to be so choppy in the near-term that we simply are not interested. Once we clear the top of the shooting star from the Thursday session, we would at that point time consider going long again. As for selling, we would have to get well below the 0.80 handle in order to do so.