New Zealand Dollar Cross Pick 08.02.2011
I remain on the sidelines on the EUR/GBP as we price action continue to consolidate around the 38.2% Fibonacci retracement of the 2008 high to the 2010 low around 0.8730-50, but I am keeping a close eye on the NZD/USD as the pair looks poised for a correction. As the relative strength index finally falls back from overbought territory, we should see the reversal from the record high (0.8840) gather pace in the days ahead, and I am looking to catch the correction. Should we see the NZD/USD close below the 10-Day SMA at 0.8684, I will take a small short position targeting the 20-Day SMA at 0.8526, with the stop at 0.8740, the 7/26 high.
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