NZD/USD Forecast January 2, 2012, Technical Analysis

NZD/USD rose on Friday as the markets bought the commodity currencies. Oddly enough, the commodities themselves didn’t do as well overall. The gold markets did well as did corn, but the oil markets sold off. The Kiwi is very sensitive to these moves, and the confusion could be a result of the end of year position squaring that a lot of trader must be doing. The pair looks like it is about to run into serious resistance at the 0.78 level, and as a result we are willing to forego any longs at this point. The 0.80 level above that looks resistive as well. The highs have been lower over time, and the economic situation around the world is shaky at best, so we are willing to wait until higher levels like the 0.80 mark to sell on weakness.