NZD/USD had a fairly quiet session on Thursday as traders awaited the Friday Non-Farm Payroll number. The daily candle is a small shooting star, and this suggests that the pair is more likely to fall than rise. The breaking down of the range would typically be a sell signal, but the pair has been so strong - it is hard to suggest that. Instead, we are looking at it as a potential pullback - one we will buy into. The 0.8250 level looks to be supportive based upon previous highs and the hammer just below. With this in mind, if the pair falls, we are willing to buy in that area. If it shoots straight up, we will ignore it as the market is far overbought at this point. Selling in this pair isn't a thought.
NZD/USD Forecast February 3, 2012, Technical Analysis
NZD/USD Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3