I didn’t feel very
risk averse and am trying to milk the situation.
In the coming week
scenario 1 is a small correction and a rocket upwards after, however we need to
be aware that this is a very subtle break in the triangle therefore it is
reasonable to wait a bit before going long.
Support lines that we
need to be aware of are 0.6857, 0.6756, 0.6610, 0.6528. These points may hit an
end to the correction.
In the long term
after escaping an ascending triangle a goal of 0.75429 is set with intermediate
goals of 0.71969 and 0.72791. In the coming week there is no strong fundamental
sentiment for the NZD and the Wednesday USD movements can easily be hedged with
another instrument at that point (as they will probably have a minor effect on
this pair).
