5 May 2014
NZD/USD: Growing risk m/t uptrend back on track - JPMorgan
FXStreet (Bali) - Last week's price action in NZD/USD offers a renewed bullish setup for the pair, notes Niall O'Connor, FX Strategist at JP Morgan.
Key Quotes
"The reversal from the critical .8514/.8480 support zone suggests a growing risk that the medium term uptrend is back on track."
"This area includes the lows from April and mid-March, as well as the 38.2% retracement of the rally from the February low."
"With the advance from this area taking on a clear impulsive bias, we see a growing risk for a retest, if not a break of the April peak."
"We recognize the risk of a topping pattern if NZD/USD fails at the .8695/.8700 resistance zone (76.4% retracement) but short term momentum studies remain in a favorable setup for additional upside."
Key Quotes
"The reversal from the critical .8514/.8480 support zone suggests a growing risk that the medium term uptrend is back on track."
"This area includes the lows from April and mid-March, as well as the 38.2% retracement of the rally from the February low."
"With the advance from this area taking on a clear impulsive bias, we see a growing risk for a retest, if not a break of the April peak."
"We recognize the risk of a topping pattern if NZD/USD fails at the .8695/.8700 resistance zone (76.4% retracement) but short term momentum studies remain in a favorable setup for additional upside."