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The NZD/USD pair attempted to rally during the beginning part of the session on Friday, but turned around and fell back below the 0.82 level. This marks a significant move lower as we actually Pierce the bottom of the hammer from the Thursday session as well. This shows that the support is being tested, and we could fall back down to the 0.80 level before it's all said and done.
The Kiwi dollar is highly leveraged to the commodity markets, and if the US dollar starts to pick up a bit, we could see the Kiwi fall as well. Looking around the markets, it does appear that the Dollar got a bit of support towards the end of the day Friday. We don't know if it's short covering before the weekend, or something more important. We suspect that a break below the 0.8150 level as a sign that we are going down to the 0.80 handle. However, we see a break above the 0.8350 level as a significant move higher waiting to happen.