The Trend of the Day - NZD/USD
After breaking above its December 10th high of .7317, Kiwi Dollar is now being challenged by a daily downtrend line that extends from the October 21st high of .7336. This could be formidable resistance that will either drive price back within the
channel or give away to fresh new highs in the .7600 area. With Non Farm payroll coming up this Friday, January 8th look for some choppy sideways action leading up to the very important U.S. employment announcement.
All eyes will be on this first NFP on the New Year which may set the tone for the the rest of 2010.
Drop to a 4-hour chart to identify the double bottom on January 4th and 5th at .7319 which would be a good place to place a stop. Use your favorite oscillator like Stochastic to find an entry in the direction of the trend.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.