NZD/USD Technical Analysis October 21, 2011

The NZD/USD pair produced a doji on Thursday, which is the third in a row. Obviously, the market isn’t quite sure what to do with it. The recent range is just below the 0.8000 mark, and could make a massive move in one direction or another after the weekend as the EU meeting gets underway. The market will make its intentions well-known after the weekend as these talks are the main focus of the entire forex world currently. If the outcome isn’t’ good – this pair will meltdown. The fact that it cannot rise over 0.8000 might be showing us that it is already leaning to the downside. We would wait until Monday to put on a new position, unless of course some concrete action of headline comes out on Friday that sends this pair in a velocity that breaks out of the recent consolidation.