NZD/USD Technical Analysis October 18, 2011

NZD/USD fell on Monday as traders sold off risk-related assets around the world. The 0.8000 area has held as significant resistance and this action suggests that we may see a continuation of the previous down move. The pair is highly sensitive to global risk taking, and the mood has decidedly turned a bit sour as it appears the Europeans are in no rush to get the solution to their debt issues out in front of the problem. The lack of drive will continue to weigh upon the riskier currencies, and the Kiwi dollar is no exception. We like selling rallies at this point, and would even consider a short on a break of the Monday lows.

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