The Australian dollar is on the verge of a historic low against the New Zealand dollar and could even go below parity next year, according to foreign exchange broker ThinkForex.
Currently, one Australian dollar buys $1.049 New Zealand dollars – just above the $1.042 low reached in 2006.
“The currencies have always traded above parity since being floated so this will be an historic event,” said ThinkForex senior market analyst Matt Simpson.
The Aussie hold above parity was looking “increasingly tenuous,” he said.
View original post on Sydney Morning Herald
– The set-up is almost identical to the GBPCHF trade posted recently.
So I’m favouring buying any dips, or resetting my entry to enter above the 1.039 area with my stop beneath the congestion zone – whichever happens first!
USDCHF weekly chart produced a bearish engulfing candle and recent gains were rejected around a fibonacci cluster.
I’m currently short on this pair and posted a set-up recently on the TradeSecret forum and will continue to short any pullbacks.
The daily candle on Friday produced a hammer (bullish) so I expect a retracement before losses resume to test historical lows… and possibly beyond!