NZDUSD: 12 March 2015, Wednesday, 5.32pm Singapore Time
In the event of any USD healthy correction, NZDUSD is the pair that will execute the best dead cat bounce.
1. The USD strength was warned by me last year to happen.
2. The USD strength has executed successfully when no one expected it since my warning.
3 Media worldwide is reporting the fact now, 6-9 months after my call for USD strength. When news are reported in media, they are often stale enough already.
4. Markets will go reverse of what the majority crowd is anticipating now. Hence, USD healthy correction that will wipe out all the weak longs of USD for now. When these weak longs have been wiped out terribly, only then will USD resume its long term uptrend for NZDUSD to go down again.
5. Based on chart, New Zealand Dollar tried to resist falling too much when USD gained strength for the past 9 months. It is the most correction-resistant currency, this means New Zealand Dollar will technically rebound the most in a dead cat bounce.
6. Note that longing NZDUSD is a counter-trend of the long term trend. So it poses some risk; however, choosing to long the strongest entity during a counter-trend trade offsets the risk as much as possible despite the risk.
Click "Share" on the Facebook icon at the bottom of this thread if you like it, or
if you would like to start a discussion about it with friends on your Facebook Wall.
No comments:
Post a Comment