NEW ZEALAND DOLLAR SET FOR A BOUNCE - EXTREMELY OVERSOLD
Kiwi Dollar has suffered a lot from:
-RBNZ rate cut
-China stock bubble implosion
-Global equity risk off fueled by Greek and Chinese crisis, hurting high yield currencies
From a fundamental perspective, on the following weeks:
-Greek debt crisis will be solved
-Chinese stock crisis will stabilize as PBOC has been cutting rates and is ready to intervene directly on stock markets and cut even more rates
-Chinese rate cuts should give some fresh air to AUD$ and NZD$
And from a technical perspective it's really difficult to see Kiwi to suffer more selling. Extremely oversold.
CONCLUSION: Long NEW ZEALAND DOLLAR for a 3-4% bounce on the next 1-3 weeks
-RBNZ rate cut
-China stock bubble implosion
-Global equity risk off fueled by Greek and Chinese crisis, hurting high yield currencies
From a fundamental perspective, on the following weeks:
-Greek debt crisis will be solved
-Chinese stock crisis will stabilize as PBOC has been cutting rates and is ready to intervene directly on stock markets and cut even more rates
-Chinese rate cuts should give some fresh air to AUD$ and NZD$
And from a technical perspective it's really difficult to see Kiwi to suffer more selling. Extremely oversold.
CONCLUSION: Long NEW ZEALAND DOLLAR for a 3-4% bounce on the next 1-3 weeks
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.