The NZD/USD pair shot straight up during the previous week as we approach the 0.85 level. This area significant resistance, so we think that it is
The NZD/USD pair shot straight up during the previous week as we approach the 0.85 level. This area significant resistance, so we think that it is possible that we see a pullback from the 0.85 level in order to attract more buyers to continue to push the Kiwi dollar higher. We do believe in the longer-term aspects of this trade, and think that the Federal Reserve and its culture easing policy will continue to put a floor under commodity currencies such as the New Zealand dollar, and as such we will buy pullbacks that show signs of support, especially around the 0.83 handle and by a close above the 0.85 handle. We have absolutely no plans on selling at this point.
NZD/USD forecast for the week of December 17, 2012, Technical Analysis
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.