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New Zealand Dollar Technical Outlook

Wednesday, 29 October 2008 14:35:22 GMT

Written by David Rodriguez, Quantitative Analyst

The New Zealand Dollar/US Dollar pair recently rebounded off of 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. Given the impressive retracement, we expect further short-term NZD/USD strength through the near term. A decisive break above current resistance at 0.5750 opens up a move towards the top of its downward-sloping channel at 0.5900.

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