The NZD/USD pair continued to grind sideways during the Thursday session as the pair takes a breather from the massive bull move it had recently seen. The Dollar is under pressure in general, and the commodity currencies have been loved since the start of the holiday season in December. This pair is particularly apt to move in these conditions as it is a smaller and less liquid market than the Aussie.
The 0.8350 area is proving to be resistive, and the shooting start that was printed for the Wednesday session is a sign of weakness. However, the hammer form just a few days before that shows that there are buyers as well. Perhaps we are looking at more of a tight consolidation. None the less, we are avoiding the market for the moment as we don't want to sell into the big rally, and don't feel comfortable buying at this level currently. A pullback and supportive price action in the 0.82 area would be ideal for us to go long.
NZD/USD Forecast February 10, 2012, Technical Analysis
NZD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3