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NZD/USD at Critical Retracement Zone

By:   James Hyerczyk
  • 17-07-2008
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The NZD/USD felt pressure on Thursday from traders reallocating assets out of New Zealand and into the U.S. stock markets.

Although the higher yield offered by this country is attractive, traders decided to take on a little more risk for more reward and shifted their assets.

Any weakness in the U.S. stock market may turn this market around on Friday.

The charts indicate a break to .7622 to .7589 is likely.

As long as the central bank keeps rates at 8.25%, expect long interest in this pair.

Any talk of an economic slowdown or any other threat to this attractive yield can trigger a massive liquidation.

A recent report showed accelerating inflation, which prompted traders to cut back on bets that the central bank would lower interest rates this month.

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Next Analysis: iFOREX.bg USD/JPY Technical Analysis 18 July 2008
Content Provided by:
James Hyerczyk

James A. Hyerczyk is a registered Commodity Trading Advisor with the National Futures Association.

Mr. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor.


DISCLAIMER:
Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from James A. Hyerczyk and J.A.H. Research and Trading or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as "spread" or "straddle" trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.


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