NZD/USD Forecast December 14, 2011, Technical Analysis

NZD/USD fell after initially rising during the Tuesday session. The rebuke of the rally suggests that there are lower prices ahead for this pair, and as a result we are not willing to buy the Kiwi at all right now. The “risk off” attitude of the markets should continue, and that is always bad for the New Zealand dollar.

The 0.75 level below looks to be supportive as it is the round psychological number, and the top of the gap from two weekends ago. These gaps generally are support and resistance, so we think that area will slow down the descent of this pair. However, if it gives way- we are massive sellers of this pair at that point. We sell rallies, and a break below the 0.7350 level.