NZD/USD Forecast May 31, 2016, Technical Analysis

The NZD/USD pair initially fell during the course of the day on Monday but turn right back around to form a hammer. That hammer of course is a bullish sign and we could very well bounce from here. However, the 0.6750 level above has been resistive, and that resistance extends another 100 pips higher. With this being the case, the market should very well find quite a bit of resistance and selling above if we do rally. A break down below the bottom of the hammer from the Monday session would also be very bearish. We have no interest in buying at this point in time.