The kiwi may look like it is in an uptrend against the US dollar but in reality, according to the Dylan Wave Theory, it is in a big correction and it has reached a major resistance price at .7363. The one-year gain against the US dollar since last August may have come to an end.
Overall the New Zeland economy is doing well and recent price hikes for milk (largest export product) in New Zeland is helping the NZD stay strong; however, the gains in NZD against USD most likely already has discounted the positive outlook. Also, there is a good chance the Fed may raise the interest rates, which would further strengthen the USD.
An important part of technical trading is to move the protective stop down. I recommend a four ATR stop and five ATR profit target. The protective stop should be moved to breakeven price when NZD/USD reaches .7200.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.