NZD Forex Revisited (Again)

About five weeks ago, I posted about shorting the New Zealand Dollar here.

The timing just was about perfect. The market "topped out" the very next day, sank, recovered some, and then really starting sinking.



So the NZD/USD market moved from about 71 cents to 68 cents. Three pennies. So what, right? Well, the FOREX market is so highly leveraged, that three penny move would have resulted in a three hundred percent return over the course of those five weeks (e.g. a $10,000 account would be worth about $40,000).

What's exciting to me about this graph is how cleanly it played within the Fibonacci retracement. NZD/USD is considered an exotic currency market. But it's a terrific-looking graph. I'd step aside at this point, although long-term I can see this graph heading much lower.