NZD/USD Forecast December 5, 2012, Technical Analysis

The NZD/USD pair rose during the session on Tuesday, and even made a play for the 0.8250 handle. However, we think the real test is above that the 0.83 level, and will not be buying until we clear that on a daily close. Right now, the pair has far too many minor support and resistance areas for us to be comfortable taking a position in either direction.

On the downside, if we managed to break down below the 0.80 handle, we think this would be an extremely bearish sign. This will more than likely be predicated upon some world headline, as the Kiwi dollar tends to be one of the most risk sensitive commodity currencies out there. All things being equal though, we do expect a breakout to the upside sooner or later.