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The NZD/USD pair skyrocketed during the session on Thursday as the Federal Reserve has lengthened and expanded its quantitative easing policies. Being a commodity currency, the Kiwi dollar fared very well as we shot straight up. This pair is obviously overextended at this point out, and as such we are going to be waiting for some type of pullback in order to buy the New Zealand dollar.
The biggest problem with this parallel is the fact that when it moves like this, a lot of times the pullbacks could be very shallow. With this in mind, we do see the 0.82 handle as massive support now, and any retest of that area would have us buying this market. Also, if you have the ability to play this market with options, you may want to consider that as it does limit the downside risk on any type of sharp pullback.