NZD/USD Forecast December 19, 2012, Technical Analysis

The NZD/USD pair fell during the session on Tuesday as the overly extended bullish market though we’ve seen lately is finally getting a bit of a rest. In fact, we have suggested that a move down to the 0.84 level at the very least was needed in order to continue to gain. This is essentially what we have done now, and now we need to figure out whether or not we are going higher or lower from this point. We still don’t like this market at this point time, at least for the short-term. A move back down to the 0.83 level should bring in more buyers, but we do recognize the fact that this area that we currently trading could provide support as well. We are essentially neutral at this point time, and waiting for a nice supportive daily candle in order to get involved from the long side again.