NZD/USD Forecast December 14, 2012, Technical Analysis

The NZD/USD pair shot straight up during the session again on Thursday, but failed to get enough momentum to go above the 0.85 handle. In fact, we managed to pullback enough to form a shooting star, and this overextended market certainly looks like it could pull back and take a breather. Is because of this that we believe a break below the lows of the Thursday session is a reasonable sell signal for a short-term trading opportunity. We would emphasize the phrase “short-term”, as we do believe in the longer-term validity of the move higher. We look for support right around the 0.8350 level, so this would be short term at best, and of course if we managed to break above the top of the shooting star we would have to admit that this market looks like it’s ready to continue going parabolic.