NZD/USD Forecast June 20, 2013, Technical Analysis

The NZD/USD pair initially rose during the session on Wednesday, but fell back below the 0.80 handle after the Federal Reserve Chairman suggested that the United States would begin to pull back on quantitative easing later this year. While that was known, the real shocker was that the Federal Reserve could be completely out of the quantitative easing game by the middle of next year. Because of this, the US dollar shot up in value against almost all currencies, and as this was a weak currency pair to begin with, it makes sense that we continue lower. While the Australian dollar did break down below significant support, the New Zealand dollar did not. Is because of this that we feel if you’re going to short an antipodean currency, we actually prefer the Australian dollar.