FX.co ★ NZD/USD Bearish Outlook, January 19, 2011 (Daily Strategy)

NZD/USD

The New Zealand dollar - U.S. dollar pair continues recovering from last night due to a temporary increase in the level of risk assumed by investors and as a result of the reduction of fear on markets.
On a technical level, we believe that the rise of this pair will not be long, it still has to close the gap downwards, left without coverage on November 25, 2011. On the other hand, the pair is below the moving average for over 200 sessions, although yesterday it was able to overcome this level, in today's session it is below this level.
We believe that the pair has to decline again to lows of 0.7620 and may be seen even lower. We enter selling at these levels or wait for a pullback to 0.8080 (R_2) a break in the uptrend line will bring a slowdown in the pair. Our objective is bearish so we can place the last support around 0.7620. The level of stop loss should be placed at 0.8200.