NZD/USD Technical Analysis October 14, 2011

The NZD/USD pair fell on Thursday, only to bounce in late hours to form a hammer at the top of an up move. The 0.8000 resistance level sits just above, and it looks like the market will try to break through it again. However, until it does – one has to assume it will hold.

With all of the global risk out there, the Kiwi could be susceptible to selling at times as bad news hits the wires. The area looks like a massive resistance zone, and we are not willing to buy into it until it close above it on a daily chart. Until then, we are on the sidelines, unless of course the market breaks the bottom of this candle – which would make it a “hanging man”, which of course is massively bearish.