NZD/USD Technical Analysis October 26, 2011

NZD/USD fell on Tuesday after breaking the 0.8000 barrier, and then printed the shooting star on Monday. The signal was confirmed as the markets broke below the low on Monday, which was a sell signal. The fact that we have closed below 0.8000 does not bode well for bulls. If the market can break the lows over the last week or so – this pair goes much lower, perhaps to 0.7500 or so. The breaking of the Monday high is what it would take in order for us to get long of the Kiwi dollar. The “Risk On” trade needs to be in vogue for this pair to rise again. With situations in Europe being so cloudy, it is difficult to get bullish the “Risk On” trade.

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