Kiwi on the verge of breakout after 6 days of gains

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NZD/USD is just a few pips shy of reaching the highest level since March as it gains for a sixth straight day.

The kiwi was the best performer last week after the RBNZ signaled it was likely to hold rates at 2.50% for the foreseeable future.

It’s rare for a currency to gain for six consecutive sessions and longs would be wise to take profits here. Shorts may consider betting on a retracement.

At this point, I expect 0.8356 to break and run through some stops. That should present some attractive levels for a one or two-day short.

Author: Adam Button

Adam Button is the managing editor of ForexLiveâ„¢. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

2012-12-10T14:42:57+0000

All|Americas|Featured|Regions|Technical Analysis

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Adam Button

6 Comments

  1. with fomc wednesday… who’s gonna buy usd?

  2. Hi Adam I have been wanting to short this pair for a while. Was long last week and made a little bit but was unsure it going up and it did. what level would be perfect for a short please in your opinion? And what do you think about cadjpy pair? Thanks

  3. I would say 0.8385 but I like to watch the shape of a move rather than just pick a number. If there is a spike higher and then a reversal, I don’t care what the level is. I like CAD/JPY at these levels.

  4. U like cadjpy? Meaning long cadjpy soon or other way round? Thanks for the nzd level. U guys are amazing. long live forexlive.

  5. yes pdowusu, I like CAD longs from most perspectives.

  6. Few months ago you were calling for 0.75 for NZDUSD… it went straight up from 0.797 when u were making that call.. now you are calling for a breakout… better go short then

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