NZD/USD is too high, go to Vegas now!

Below is the capture of NZD/USD I made tonight at 12.50 am. (Updated to now)



I have made a support line (blue line) and the rate finally broke it. I believe for the next 4 weeks at least after Easter it would try to go down approaching .7100. My common sense is that the recent rates are too high, completely too high and needs adjustment.

Whatever the NZ's current account data and GDP would be like as it will be announced on next Wednesday and Thursday, it may not change market feeling of the overvalued NZD. That's enough, don't buy more NZD otherwise NZ milk and wool would be too expensive. Yeah right. More Kiwis can go to Vegas now, though.

Don't you feel it's cheaper to travel to US now than two years ago? For USD 10,000 travel budget, we spend about NZD 20,000 two years ago, but today only NZD 13,700.



Overall, NZD/USD appears in a strong up-trend line since October 2001. However, stabilisation NZD/USD, in my opinion, may occur between .60 - .80 for the next five years. Then, there are two options for the financial authority: keep floating and/or currency union with the Aussie.