The New Zealand Dollar posted a closing price reversal up on the weekly charts which a strong sign a bottom has been reached.
This pair has to confirm this reversal bottom next week, however, to validate the signal. A trade through .7078 will confirm the reversal.
The charts indicate there is room to the upside with a resistance cluster at .7281 to.7292 the main target.
This low this week was .6823, the same bottom as September 10, 2007.
This means that the market has retraced almost 100% of the rally since August 2007.
Fundamentally, the longer-term fundamentals are still bearish as the weak economy and high unemployment is indicating an interest rate cut before the end of the year.
PATTERN
Main Trend: Down
Main Trend Top: .7761 (07-15-08)
Main Trend Bottom: .6823 (08-13-08)
PRICE
.7403 .618 Retracement
.7292 50% Retracement
.7281 Gann Angle Down
.7064 New York Close
.6943 Gann Angle Up
.6883 Gann Angle Up
.6853 Gann Angle Up
.6823 Main Trend Bottom (08-13-08)
.6799 .618 Retracement
.6639 Main Trend Bottom (08-17-07)
TIME
Aug 15 90-Day Cycle
Aug 17 1-Year Anniversary