NZD/USD Technical Analysis October 19, 2011

NZD/USD had a strange day on Tuesday as traders went from bearish to bullish and back to bearish later. The pair is a great barometer of global risk, and will continue to be influenced by events in places like Europe. The 0.8000 level is also in the neighborhood, and should continue to be resistive at this point. It is because of this, we prefer finding selling opportunities, but are presently seeing none.

The daily long-legged doji that was formed on Tuesday does give us a set up though. The doji is traded on a break of the top or bottom, and in that coinciding direction. The breaking of the lows is more tenable to us as it is with the trend. However, a daily close above the 0.8000 mark, and a breaking of the top of the candle is a very bullish sign, but this pair will always be at risk because of the global issues.