The rates continue within the uptrend. Over the past 6 months, since the beginning of the trend, the New Zealand dollar has grown by 16.2 % and has become one of the most profitable assets for investment. The strengthening of the New Zealand dollar was made possible by external factors, such as the weakening of the USD, the recovery in demand for raw materials and their rising prices, as well as the rapid economic recovery in China.
This week the upward trend continued, although the USD managed to strengthen slightly yesterday due to good reports about business activity in the manufacturing sector. However, the Fed's policy has not yet motivated investors to return to investing in the US currency, and even the RBNZ's rhetoric about its readiness to introduce negative rates has not negatively affected the value of the NZD.
The maximum level for a year and a half has already been reached. On the chart, we can see a high probability of a price correction. Many technical indicators show that the NZD/USD is overbought. Perhaps there will be a chance for the USD to strengthen with the publication of reports on unemployment, which is projected to decrease. Therefore, we believe that in the short term, the deals to SELL will be more effective, but in the long term, we remain committed to the deals on the trend, which is confirmed by most indicators of technical analysis.
