The NZD/USD pair finally managed to crack above the all-important 0.8000 level on Friday, as the traders around the world chose to carry risk into the weekend. The G20 meeting is hoped to produce some kind of solution for the EU, and as such – traders sold the Dollar off against almost anything they could.
The Kiwi is highly sensitive to global risk, and will continue to be pushed around by the situation regarding Europe. In fact, at this point the technical analysis is one part charts, one part whatever news flow comes out. The meeting over the weekend is more likely to disappoint, so we aren’t quite comfortable buying this pair quite yet. After Monday, if we have another positive day, we could be buyers. If we open sharply lower on Monday, perhaps gapping – we would be ready to sell again. After all, the trend has been down until just a few short days ago.