Our predictions regarding the direction of the currency pair NZD /USD, presented in the preceding analysis fulfilled. Quotations remained fixed in the article and the target level of 0.59 at the moment there are about 0.65 marks.

We believe that in future the next few months, there is reason to expect to replace the prevailing 3 quarters of 2008 long-term downward trend in long-term bottom.

This says first of all, the intersection of simple moving averages with a sufficiently large time intervals of 50 and 200. Thus, fast moving slowly upward, crossed with the first 3 quarters of 2006, thereby giving a signal to the formation of at least medium-term upward movement of quotations (Fig. 1)

Fig. 1 - Full-time dynamics of a pair NZD /USD in 2005, and the exponential moving averages

 

Source: Reuters

considering other technical indicators for the pair NZD /USD could be said that they also point to the development of upward trend. Indicator ADX, submitted under the daily schedule in Fig. 2 shows the intersection of the line DX DX-line upwards, which confirms the upward trend, with the trend line is beginning to rise in July, referring to the increasing power of motion.

indicator of slope of linear regression, which is located just below last week, crossed the zero point, thus giving a signal to buy.

Relative Strength Index RSI is outside the zone perekuplennosti and pereprodannosti that also does not preclude a new trend.

Fig. 2 - Technical indicators for the pair NZD /USD

 

Source: Reuters

Recommendations

Thus, in the perspective of the next few months, we recommend that you play to increase the pair NZD /USD, as at this point we have studied indicators of technical analysis.

Target motion pair, based on progress in the second quarter of 2008 maxima, shown before the downward trend will be a 0.79 mark, while in the case of a false alarm and the closure of a number of trading sessions running less than a slow moving average subject to change signals from other indicators on the opposite, we recommend to set stop-loss at 0.59.

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