Forex Investment and Currency Trading

NZDUSD: Closed below the 200 dma for the first time since January which leaves it in a weak position. Further losses are likely and a close below 0.7645 (55 wma) would suggest accelerated losses to 0.7040 (200 wma).

Concentrating on NZD on a broad basis, the NZDG10 index (equally weighted against other G9 currencies) has now breached good support at 94.47 and trading very heavily. Further losses down to the August ’07 low are expected which would mean a drop in the NZD of some 3.5% from current levels. A breach of that would bring the ‘06 low in focus which is almost 10% from current levels at 85. We believe that this bear market has further to go and the outlook for the NZD remains poor.