The NZD/USD pair rose initially during the Wednesday session as the risk on trade came back into play. The Chinese had an official suggest that they are willing to get involved and help out the Europeans. However, this had been said several times before, without any action.
The European Union officials have announced that the decision to bailout the Greeks that was expected during the Wednesday session is now being postponed, and this of course has spooked the markets yet again. The Kiwi is very sensitive to risk, and as such the pair fell. The resulting shooting star is right at the 0.8350 level that has been so resistive, and as a result - it looks like the pair is about to fall, albeit only for a pullback in our eyes.
Because of this, we are selling below the lows from the Wednesday session, but are only thinking of it as a short-term trade with a target of 0.82 or so. If we break the top of the candle, this would have us buying for the longer-term.
NZD/USD Forecast February 16, 2012, Technical Analysis
NZD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3