I’ve been watching this set up for a while … if your a currency trader, this has the real potential to be a powerful trade going LONG KIWI vs the “mighty” USD. Some things to consider:
- the KIWI is not part of the US Dollar Index.
- So, while the dollar index explodes …it really doesn’t have anything to do w/ the INDEX of the US Dollar.
- In fact, you’ll see that the KIWI has yet to even retrace .382 of the entire 2000-2011 advance.
- Compare that to the USD vs EURO/Pound/Aussie/Loonie/Yen and you’ll understand that it’s showing remarkable strength.
- Take note, however, a the potential EPIC double top in place. I am very aware of that but right now, w/ the dollar index being so very overbought and at an extreme in sentiment, I expect (over the coming days) for the dollar to be sold on a broad basis. Hence, KIWI to rise against the dollar …
- My take is we have a FLAT correction completing and if I can count 5 clear waves down then we might have bottomed …
- To the charts:
Long Term Monthly KIWI vs USD:
Weekly KIWI vs USD:
Daily KIWI vs USD
Keep this one on your radar screen ….
Bart
