By: Colin Jessup
Yesterday I wrote that I felt we could be forming a double bottom on the USD/NZD aka the Kiwi and now we see that this appears to be the case. Price was unable to hold its own below 0.8200 and closed in the top third of the daily candle, on the upward side of the support zone at 0.8200. We are still below the moving average, but each almost every time price has reached this level we have seen a reversal.
If price breaks to the upside we will see some resistance at 0.8250, 0.8320 & 0.8380 as I mentioned in yesterday's post. If however, price falls below 0.8200 again, it must break below another key support level at 0.8097. With the level of 0.8200 being such a strong level we will need to use caution in both the bulls corral, and the bears den below. I am leaning a little more in the direction of the bulls with this pair now.
Happy Trading!
.jpg "NZD/USD Analysis, September 13, 2011")