25 Jul 2013
Flash: Risk of new lows in NZD/USD; targets starting at 0.7445 - JPMorgan
FXstreet.com (Barcelona) - NZD/USD weekly chart offers a medium term bearish setup, despite buyers have so far been able to hold key support in the 0.7745/0.7640 zone, according to JP Morgan Securities.
Key quotes
"The pair has held the next line of key support in the .7745/.7640 zone. While additional consolidation can develop against these levels, the pair has failed to suggest a bullish base. Moreover, short term resistance levels have capped the upside including the important .8030/65 zone."
"While intact, the risk of new lows should prevail. Note the .7745/.7640 area (76.4% retracement from the 2012 low and trendline support from the 2011 low) will define whether a deeper extension is underway with targets starting at the .7445 May ’12 low, if not the critical .7370 low from November ’11."
"Strength above the .8065 area would instead argue for a deeper short term corrective phase with potential to extend into the .8180/.8300 area (includes the 200-day moving average and the 61.8% retrace from April)."
Key quotes
"The pair has held the next line of key support in the .7745/.7640 zone. While additional consolidation can develop against these levels, the pair has failed to suggest a bullish base. Moreover, short term resistance levels have capped the upside including the important .8030/65 zone."
"While intact, the risk of new lows should prevail. Note the .7745/.7640 area (76.4% retracement from the 2012 low and trendline support from the 2011 low) will define whether a deeper extension is underway with targets starting at the .7445 May ’12 low, if not the critical .7370 low from November ’11."
"Strength above the .8065 area would instead argue for a deeper short term corrective phase with potential to extend into the .8180/.8300 area (includes the 200-day moving average and the 61.8% retrace from April)."