Technicals | Feb 13 2013
With the Aussie dollar fairly stagnant in past months the stand-out regional currency has been the Kiwi, which has run hard against the US dollar (NZDUSD) and subsequently against the Aussie (NZDAUD). The Kiwi dollar (NZDUSD) is at 12-month highs but the rally appears to be running out of steam on a technical basis, according to the TechWizard.
A second close reversal weekly bar has formed, which the Wiz explains results from a new intra-week high being reached but a weekly close below the second previous week's close, "thus trapping longs with losses". If this is the case we are in for two to three weeks of Kiwi selling, he suggests.
A daily close below US$0.83.00 could be the trigger.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
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