18 Feb 2014
Flash: NZD/USD risk to further gains on the rise - JPMorgan
FXStreet (Bali) - According to Niall O'Connor, FX Strategist at JPMorgan, NZD/USD faces an important resistance above 0.84, and while a pause is expected, risk to the upside have increased.
Key Quotes
"The reversal from the ST range lows presents an important test at the .8395/.8432 resistance area while suggesting some pause."
"The rally from the early-February low has extended into important resistance in the .8395/.8432 zone. This area represents the downtrendline from the October peak, as well as the January high.
"As short term momentum studies are now into overbought territory similar to previous highs (January, October, September), we sense some pullback is due. However, we recognize the decline from the October peak has developed in a corrective, ABC pattern implying a growing risk the pair can see at least a retest, if not break of the October high (.8545)."
"Corrective retracements should find initial support into the .8255/50 zone, with the .8125 zone viewed as a max."
Key Quotes
"The reversal from the ST range lows presents an important test at the .8395/.8432 resistance area while suggesting some pause."
"The rally from the early-February low has extended into important resistance in the .8395/.8432 zone. This area represents the downtrendline from the October peak, as well as the January high.
"As short term momentum studies are now into overbought territory similar to previous highs (January, October, September), we sense some pullback is due. However, we recognize the decline from the October peak has developed in a corrective, ABC pattern implying a growing risk the pair can see at least a retest, if not break of the October high (.8545)."
"Corrective retracements should find initial support into the .8255/50 zone, with the .8125 zone viewed as a max."