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New Zealand Dollar Technical Outlook

Tuesday, 28 October 2008 15:44:55 GMT

Written by David Rodriguez, Quantitative Analyst

The New Zealand Dollar/US Dollar pair currently stands at key support of the 61.8 percent Fibonacci retracement of its 8-year advance—a potential turning point for the NZD/USD. A break of the 61.8 percent Fibonacci retracement is largely considered the point at which the previous wave is officially over, and a break lower would point to further NZD/USD weakness. We can’t responsibly advocate a long stance following such extreme losses, but a hold of 0.5560 would suggest that the longer-term uptrend remains intact.

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