This is a monthly chart of the NZD/USD but probably one of my favorites. The reason why I love the long term charts like this is it provides me a “road” map for a bias longer term and allows me a more directional view when trading intraday or swing parameters.

This chart has a double top near the .8840 from 2011 and 2014. Support is a spike low from 2011 at .7370. A break below suggests a “long term double top” is now in play and a move to .6000 for 2015/2016 may be in the works. Considering the BOC surprisingly lowered rates last week, commodity (broad) weakness, deflationary pressures globally, and the fact that most banks are assuming the RBNZ raises rates another full basis point in late 2015 or 2016, s shift in expectations moving forward could drive the spot price significantly lower.

Here is the chart:

Blake Morrow

Chief Currency Strategist, Wizetrade

Disclaimer: I am not short the NZD/USD currently