NZD/USD: Price action around .7670 suggests interim base in place

I saw some pretty impressive technical calls on Friday suggesting that an interim base was forming in the Kiwi and it looks like these guys have called it perfectly. Weekend data out of China has given the commodity currencies another boost and after a 1200 pip fall, we may be about to see a decent retracement.

The AUD/NZD has been consolidating in a 1.09/1.13 range and a return to the medium-term down-trend is certainly a distinct possibility.

Risk-reward would suggest that buying NZD/USD dips with stops well below .7650 makes excellent sense.

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