The NZD/USD pair broke higher during the day on Tuesday, clearing the top of the hammer that formed on Monday. While this is normally a very bullish sign, there is a significant amount of resistance above at the 0.73 level, and also the 0.74 handle. A shooting star or some type of exhaustive candle after a rally is reason enough to start selling, and as a result that’s what I’m waiting for as I don’t really see any other play, with perhaps the one exception being a break down below the bottom of the hammer on Monday which of course would show a pickup up momentum to the downside.
