Whenever we want to buy pairs, we always want to know if NZD pairs performing good or not and how about the counterparts, would be best if counterpart currency the weakest of all currencies, example for several years was AUD/JPY strong AUD and weak JPY, you can use fundamental analysis or technical analysis to determine which one is the best.
example NZD/USD. From your analysis NZD currently the one you want to buy,
If you follow the news about American dollar, you will know Bernanke remark last week where he said there was no preset for the fed bond purchase program. This remark send dollar down.
For Long term investors expecting the fed stop their bond purchase program which might lead to stronger dollar.
You can learn about analysis in babypips, there are many resources and the school section is good place to learn too.
Hope this post can help
USD and JPY fundamentals are looking bullish. AUD is becoming bearish with the RBA poised to reduce interest rates, Australia’s major export partner China reducing demand, falling commodity prices etc. If I was playing the NZD, AUDNZD would be looking attractive. Or perhaps EURNZD, which has the bonus of the carry trade. I’m personally pessimistic on the euro zone fixing itself. This is purely based on fundamentals. Perform your own due diligence.
Anyone can draw lines, that doesn’t move the market. TA makes your order placement known to your competitor.
James and Kevin are on the ball with future economic scenarios that will affect future pricing. Think not what’s weak now but what will be in the future. Explore the daily analysis in Fundamentalville should help you out.