NZD/USD Forecast December 7, 2012, Technical Analysis

The NZD/USD pair rose through the 0.83 resistance level that we had spoke about yesterday, and as a result looks very healthy and ready to go higher. However, with this being nonfarm payroll Friday, it is difficult to initiate position now. We do like buying this market if we rise above the highs from the Thursday session, and would start buying at that point, but only after the nonfarm payrolls number is released. After all, placing a position on before then is simply gambling.

If we managed to pullback significantly, we think that it could end up being a buying opportunity for the New Zealand dollar as the markets will more than likely focus on the fiscal cliff rather than the jobs number in the end. Now that we have broken above the resistance area, we do find this pair interesting and a potential buy.