NZD/USD fell again on Tuesday as the risk sentiment starts to fade a bit. The optimism over a Greek bailout seems to be fading a bit, and as a result the riskier currencies such as the Kiwi could take a bit of a hit at this point. However, the Kiwi is strong overall, and we expect the uptrend still has legs at this point.
The pair looks set to consolidate between the 0.84 and 0.8250 levels, and it is this range we wish to see broken out of in order to place a trade. The buying of this pair is all that we can do, and a breakout to the upside of this consolidation area is one strategy that we can employ. If we break lower, we are willing to buy supportive candles, especially around the 0.82 and 0.80 areas.
NZD/USD Forecast February 22, 2012, Technical Analysis
NZD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3