NZD/USD Forecast December 12, 2012, Technical Analysis

NZD/USD broke out on Tuesday as the 0.83 resistance area is now in the rearview mirror. It appears of the previous three sessions were simply the market taking a rest before its next leg higher, and as a result this market looks suddenly very bullish. However, it still seems a bit overextended at this point in time, so we are not comfortable going long.

What we’re looking for is some type of pullback that shows any signs of support. We obviously can’t sell this pair, but buying up at this level would more than likely be chasing the trade.