NZD/USD forecast for the week of December 24, 2012, Technical Analysis

The NZD/USD pair fell hard during the week as the 0.85 level continues to be far too resistive for this market to conquer. However, we are starting to get close to support now, so we have to wonder whether or not there is enough bearish pressure to push his pair down much farther. Also, you have to keep in mind that this week coming up is without a doubt one of the least liquid ones of the year, and as a result we may see very little in the way of action.

However, we believe that ultimately this support should hold, as most of this would’ve been predicated upon concerns about the so-called “fiscal cliff” talks that have been going on. As soon as there seems to be some type of deal or positive news, this market will more than likely shoot straight back up.