NZD/USD Forecast April 25, 2013, Technical Analysis

The NZD/USD pair rose during the session on Wednesday, heading towards the 0.85 level before stopping. This broke the top of a significant hammer from the Tuesday session, so of course it was a relatively decent buy signal. However, we have been saying that the 0.85 level easily overtaken in order to start going long of the New Zealand dollar, so therefore we stepped out of the market a few days back and simply have not returned yet. After seeing the action on Wednesday, we become more and more convinced that the 0.85 level is crucial for this marketplace, and will be buying a daily close above that level.