Best Financial Markets Analysis Article Continuing the theme from the last FX Update on the US Dollar Index and a possible final downleg unfolding there we look at a similar (but reversed) chart structure in NZD/USD where bulls could be steadily scraping towards the bottom of the barrel..

The FX Trader’s view

WEEKLY CHART:

After a temporary pause ahead of the 0.6637 Aug-07 low, when support emerged from a 23.6% level, a further push higher has seen the 0.6945 61.8% recovery level loom into view.

DAILY CHART:

The recent breach of the early Jun 0.6595 high signalled that s/term bulls now have the controls.

Note s/term support has come nicely from that high – ideally this will hold for now, in order to preserve current upward momentum.

We are currently keeping an eye on one interesting Fibo projection at 0.7000, just above the 61.8% recovery level.

In the FX Trading Guide we have already conjectured that we are seeing a final, third upleg. This is turning out to be less choppy than some other markets such as EUR/USD.

We hold a s/term bullish stance and don’t, at this stage, anticipate maintaining this for too long – we’ll see.

Philip Allwright
Mark Sturdy

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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