This cross broke its trend correction on the downside 3 days ago, and today’s rise looks like there may be an opportunity to go short again, especially if today’s close is below the first Fibonacci retracement line shown on the Daily Chart at 1.05746. The monthly chart seems to show a long term down trend that started in 2012 after price movement broke the head and shoulders line. The last correction in that trend lasted almost the whole of 2014 and never got past the first Fibonacci retracement line. Looks like more action on the downside on the horizon. Inflation rates in New Zealand have been much lower than Australia since 2012, even though inflation in Australia is on the downside, it’s falling faster still in New Zealand, which would seem to match the strengthening of the NZD over the time period.

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