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Short the Kiwi (NZD).

Ok, this looks like it could be a pretty good trade.  The New Zealand Dollar has been meeting resistance right at the 200 day moving average since August, 2005.  The chart shows that it is right at the 200dma again and also a downtrend line.  I would short lots of 10 here and if it moves up a little, short another 10 lots.  I would then ride it all the way down to about the .6800 level before taking profits.  However, because the National Reserve Bank of New Zealand has threatened to raise interest rates, this trade could get smashed.  So, set a stop at .7082 and maybe even take small profits on the way down so that if something bad happens, you won't lose everything at your stop.  All in all, if you short a total of 30 lots, that might cost you $200 USD in the Mini Forex, but if the trade goes right, you could make about $1300.

Good luck!

Shaun

Published Thursday, December 01, 2005 7:29 PM by Shaun

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