The euro/New Zealand dollar rate has plunged by almost 40 per cent since its peak of February 2009, but is now poised to recover, says Ragu Dharmaratnam of Baselica.
The single currency got back above the major, brown long-term falling line of resistance some months ago. And it is well propped up for now by the pink uptrend line and the black 200-day moving average. Positive momentum on both the weekly relative strength indicator and MACD oscillator support my bullish view. Go long on a break above $1.64, targeting $1.80 and a stop around $1.62.
