24 Oct 2013
NZD/USD keeps bullish bias intact - JPMorgan
FXstreet.com (Barcelona) - NZD maintains a bullish bias against the USD, notes JP Morgan FX Global Strategy Team.
Key Quotes
"Last week’s breakout in NZD/USD above the recent range highs near .8445 suggests additional upside can develop over the short term timeframe. Note this area also included the 76.4% retracement of the decline from the April peak."
"In turn, a closer test of the .8585/.8680 zone and April highs now seems likely. Unlike other USD pairs, the short term momentum setup is overbought and bearishly diverging.
"Support in .8340/50 takes on added importance given this momentum setup - Sept uptrendline and the early-October breakout zone - still, a violation of the critical .8215/.8140 zone (Sept breakout, 200-day MA and early-October reaction low) is necessary to imply a more sustained bearish shift."
Key Quotes
"Last week’s breakout in NZD/USD above the recent range highs near .8445 suggests additional upside can develop over the short term timeframe. Note this area also included the 76.4% retracement of the decline from the April peak."
"In turn, a closer test of the .8585/.8680 zone and April highs now seems likely. Unlike other USD pairs, the short term momentum setup is overbought and bearishly diverging.
"Support in .8340/50 takes on added importance given this momentum setup - Sept uptrendline and the early-October breakout zone - still, a violation of the critical .8215/.8140 zone (Sept breakout, 200-day MA and early-October reaction low) is necessary to imply a more sustained bearish shift."