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1 Nov 2013
Flash: NZD/USD, technical damage done - ANZ
FXstreet.com (Barcelona) - The sharpness of the decline in NZD/USD last week from 0.85+ is indicative of a technical failure in front of triangle resistance in the 0.8620’s, notes Tim Riddell, Head of FX Research at ANZ.
Key Quotes
"This sharp pullback underscores the favoured profile of a much larger scale consolidation pattern evolving off the 2011 high. Therefore, slippage toward the 0.8200 level needs to be watched closely to determine whether the range will be flipped again, but to the downside this time."
"The technical damage appears to be done and any rebounds should merely mark a pause in the likely range flip scenario. Even if more pronounced rebounds were to develop, a close above 0.8440 would be needed to reverse the current bias for a secondary slide to form towards the 0.7845 area."
Key Quotes
"This sharp pullback underscores the favoured profile of a much larger scale consolidation pattern evolving off the 2011 high. Therefore, slippage toward the 0.8200 level needs to be watched closely to determine whether the range will be flipped again, but to the downside this time."
"The technical damage appears to be done and any rebounds should merely mark a pause in the likely range flip scenario. Even if more pronounced rebounds were to develop, a close above 0.8440 would be needed to reverse the current bias for a secondary slide to form towards the 0.7845 area."