Kiwi dollar continues the comeback
The US dollar was among the top performers last week but it’s back in the basement this week. At the other end of the spectrum is the New Zealand dollar, which was easily the top performer this week.
Looking at NZD/USD, it’s had a nice two-week breakout from the 2020 highs but now faces the late-2018 and early-2019 highs as resistance.
I’m increasingly of the belief that we’re going to see a big breakdown in the US dollar and this is going to break out. The timing of it is the challenge but this chart, along with USD/CAD are at pivot points, so expect them to all break at once.
I get the sense that so many people are looking for dips in commodity currencies, EMFX, equities, gold, oil, etc. Usually when everyone is begging for that kind of dip, it never comes.