After establishing a new high for 2012 by 4.2 pips, the NZD/USD printed what is known as an 'Inside Bar' yesterday without making a new high, or breaking last Friday's low either. Support waits at 0.8418, in the form of a Weekly Pivot and just below yesterday's low plus Thursday's low of 0.8420. The Weekly and Monthly charts for this pair remain quite Bullish, and I expect we will see a new high again, possibly before 2013, if the pair breaks above what is now resistance at 0.8475 but a bearish correction is likely in the near term with support at 0.8360 and 0.8320 being the most likely targets for the Bears, followed by 0.8260. The pair is now very close to breaking yesterday's low of 0.8425 with about 2 hours until the London Open. To the upside, if and when this pair continues higher, we have a key level of resistance at 0.8575 established in 2011 after a Weekly R1 at 0.8517 and prior to the all time high at 0.8797 which the Bulls will be shooting for on the next push if history does its thing and repeats itself.
Happy Trading!