The NZD/USD pair hit 0.7765 on January 19th and promptly fell over 200 pips. Will the pair fall again?
I think the Kiwi (NZD/USD currency pair) may be ripe for a trade. On January 19th the NZD/USD pair hit resistance at 0.7765. This is hardly surprising as this pair had fallen after reaching this level on December 31st. What may be surprising to some forex traders, however, is that this pair found resistance at this level over several months, between October 2007 and January 2008. Might price once again reverse here? Time will tell. I will be watching this pair closely next week, if it does fall to 0.7690 during the next European trading session I will probably sell this pair.
Where might this pair go if it does fall? If price does indeed have a memory, we may have a very obvious profit target. Where do you think that profit target may be? Why would we use that price level as a profit target.
