NZD/USD Forecast June 21, 2012, Technical Analysis

NZD/USD rose slightly at the end of the day in order to form a slightly green doji for the Wednesday candle. The 0.80 level above will be resistive, so a move in the near term will be interesting. The markets will have to clear the 0.80 level with conviction in order for us to buy it. The break of the bottom of the doji would give us a sell signal. The 0.78 level should be supportive, so a move down will more than likely be a pullback, not a meltdown. All things being equal, we prefer to sell if given the signal as there are certainly more potential negative headlines out there than positive ones.