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15 May 2014
NZD/USD: Rally mature, additional downside likely - JPMorgan
FXStreet (Bali) - JPMorgan FX Strategists suspect that a short term corrective phase is underway in the NZD/USD market.
Key Quotes
"The decline from the May high and reversal pattern suggests an increased risk that a short term corrective phase is underway. This follows the effective test and hold of important resistance levels against the USD and for the crosses."
"For NZD/USD, the recent high fell just short of the .8845 target and 2011 cycle high. In turn, the price action affirms the importance of this area as the medium term range highs."
"With the rally phase from the February low is mature and short term momentum studies are overbought, additional downside seems likely. The key focus will be on the .8517/00 support zone which includes the range lows from April/March, as well as the 38.2% retracement of the rally from the February low."
"Violations would confirm the onset of a deeper corrective phase with risk into the next line of key support levels near .8330/.8225 zone. This area represents the 61.8/76.4% retracements of the rally from the February low, as well as the 200-day moving average and should be a max."
Key Quotes
"The decline from the May high and reversal pattern suggests an increased risk that a short term corrective phase is underway. This follows the effective test and hold of important resistance levels against the USD and for the crosses."
"For NZD/USD, the recent high fell just short of the .8845 target and 2011 cycle high. In turn, the price action affirms the importance of this area as the medium term range highs."
"With the rally phase from the February low is mature and short term momentum studies are overbought, additional downside seems likely. The key focus will be on the .8517/00 support zone which includes the range lows from April/March, as well as the 38.2% retracement of the rally from the February low."
"Violations would confirm the onset of a deeper corrective phase with risk into the next line of key support levels near .8330/.8225 zone. This area represents the 61.8/76.4% retracements of the rally from the February low, as well as the 200-day moving average and should be a max."