NZDUSD Holds a Range

·Amid an eventful US calendar, liquidity tends to drop significantly during the last two weeks of the year as traders round-trip their open positions ahead of the holiday weekend. As trading volume tapers over the next two weeks, a major breakout is highly unlikely, and the NZDUSD should hold its broad range through thin markets.

· The NZDUSD snapped back last week to cross above the 21.4% Fib and the 50 Day SMA, but the lack of momentum to push higher has held the pair in a downward trend. On 12/18, we saw the NZDUSD surge to an intraday high of 0.6086, but failed to hold its gains as the pair ended the session lower, which suggests that forex traders remain bearish against the pair.