NZD/USD Forecast December 28, 2012, Technical Analysis

The NZD/USD pair initially fell during the Thursday session, but bounced back in order to form a hammer and more importantly fill the gap from the weekend. Now the real question is whether or not we can break higher, which of course would be a massively bullish sign. If we managed to break above the 0.8250 level, we feel that this market will continue much higher as we are coming from a base of support going all the way down to the 0.80 handle. This would in fact be a very bullish sign, and as a result we would not hesitate to start buying. We figure a target of 0.85 would be aim for at that point time, and perhaps possibly even higher. As for selling, we have no interest in selling the Kiwi dollar until we managed to close below the 0.80 handle on a daily chart.