The New Zealand dollar has seen a strong rally over the past 3 weeks from below .50 to above .58.  This has caused some major changes on our 1% point and figure chart on the NZD/USD as it has broken through the trend line set back a year ago in March of 2008 when the pair was above .82.

Looking at the chart we can see that this week we have seen a buy signal given above the trend line which is confirmation that the trend has changed.  We however will not be entering a position now as it seems over extended and will wait for some consolidation or a better chart formation to enter a position.

This is the first major currency to have confirmed a trend change against the US dollar (USD) since the big USD rally we have seen over the past year.

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