By recognizing what is going on as a currency war, US and Europe can therefore call for a truce. The basis for the truce is some sort of agreement on Asian currency appreciation. Making it a regional issue avoids singling China out. Moreover, given the significance of intra-regional trade, getting an regional agreement may avoid a change in relative competitiveness within Asia. Yet the chances for such an agreement seem slim, and arguably too slim to justify risking the unleashing of protectionist retaliation in the so-called war.
We will now get the clues from the Weekly chart on Aud/Nzd, It is now showing a beautiful Double Tops Formation. It means a high potential for further strengthening of NZD.
Note: The Aud/Usd will be retesting 1.000 , which is rather limited upside with another possible lift near 1.0150.
Back to the NZD/USD, On the Daily chart with Ichimoku, We observe that the Bullish Divergence on both RSI and MACD shall propel this currency pair towards R3, , or 0.7640 near term, then 0.8000 of the Psychological resistance next.
Weekly chart on AUD/NZD , showing Double Top (For Bullish NZD)
Daily Chart on NZD/USD , showing Bullish Divergence
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