New Zealand Dollar Targets Fresh Lows
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Trade Implications NZDUSD – Our retail sample shows that the majority of traders have remained long the NZDUSD since it traded below $0.8600 through July—providing consistent contrarian signal to sell into weakness. And indeed traders have grown further long since last week as the pair reversed sharply off of key resistance at $0.8000.
A retest of multi-year lows near $0.7700 seems likely, and a further breakdown targets the 2012 bottom of $0.7460.
See next currency section: GBPJPY - British Pound Could Trade Higher versus Japanese Yen
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.