Score 8.1 (out of 10): NZD / USD sets up for +1.6% rally in 2 weeks

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What’s Going On Here?

New Zealand’s inflation hits 3-decade high, raising bets on sharper rate hikes.

Why Now?

NZD / USD has triggered a new technical analysis signal. During similar occasions, NZD / USD had a median return of +1.6%, over the following 2 weeks – based on 10 historical occasions with 7 of those showing positive returns (70%). This buy signal for NZD / USD received a high score of 8.1 (out of 10). This insight was generated on 2022-July-20 with last price of 0.6234.

What’s This Company About?

NZD / USD is in the Currency Exchange rate business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. Ticker symbol: NZDUSD=X.

What’s My Risk / Reward and Time Horizon?

We found 2 weeks to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 0.63 (+1.6%) has been reached. Based on NZD / USD’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 0.62 (last price at 0.6234), which is equivalent to a 0.55% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ under (2), etc.

Previous episodes:

1.7% (June-2020), 2.8% (March-2020), 1.4% (October-2019), -1.2% (July- 2019), -0.5% (April-2019), -0.2% (January-2019), 1.5% (October-2018), 3% (April-2016), 3.4% (January-2016), 2.6% (November-2015).

Historical Chart:

Summary:

NameNZD / USD
ViewUp
Star (1 to 10)8.1
Target1.6%
Time2 weeks
Hit Rate70%

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