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11 Sep 2013
Flash: NZD/USD downtrend set to resume soon – ANZ
FXstreet.com (Lisbon) - NZD/USD rebounds above 0.7920 averted an early slide and have allowed for another sharp squeeze within what is now seen as a broad, volatile but corrective trading range, suggests Tim Riddell, Head of Global Markets Research at ANZ.
Key quotes
“A break above declining resistance at 0.8075 is likely to struggle to reach the 0.8165-80 retracement area, despite supportive momentum indicators.”
Moreover, “recent gains are seen as a corrective squeeze. Dips have been tightly contained and if 0.8040 holds, gains should manage to breach the 0.8075 trend resistance.”
“However, deeper slippage would raise concerns. A breach of 0.8000 could trigger a swift retracement to the 0.7900-20 area and in so doing raise the risk of a full retest of the series of recent lows around 0.7700.”
Key quotes
“A break above declining resistance at 0.8075 is likely to struggle to reach the 0.8165-80 retracement area, despite supportive momentum indicators.”
Moreover, “recent gains are seen as a corrective squeeze. Dips have been tightly contained and if 0.8040 holds, gains should manage to breach the 0.8075 trend resistance.”
“However, deeper slippage would raise concerns. A breach of 0.8000 could trigger a swift retracement to the 0.7900-20 area and in so doing raise the risk of a full retest of the series of recent lows around 0.7700.”