NZD/USD Forecast January 20, 2012, Technical Analysis

NZD/USD dipped initially during the Thursday session as the Kiwis announced a horrible CPI number for Q4. The miss shows that perhaps the Kiwi economy isn't as strong as people thought, and this spooked the currency markets. However, the market turned around when the European bond markets saw a decent day, easing pressure on the global risk appetite.

The candle formed for the session is a bit of a hammer just after a shooting star. Both of these candles sit just on the 0.8000 level, and this area is massive in its importance in this pair. Because of this, we feel we should see the next big move from here. If we get above the highs from the shooting star on Wednesday, this would be very bullish, and we would buy and hold. If we break down below the 0.8000 level - this market turns around and falls.