20 Jan 2016
NZD/USD: bearish phase still healthy - UOB
FXStreet (Guatemala) - Analysts at UOB Group explained that while the sharp drop after the weaker than expected CPI data appears incomplete, the down-move appears to be over-extended and even a break below last week’s low near 0.6382 is likely limited to 0.6365/70.
Key Quotes:
"That said, the immediate risk is still clearly on the downside and any recovery is not expected to move above 0.6455.
Instead of slowing down, the NZD down-trend accelerated lower and as mentioned previously, a break below 0.6380 would target a move to 0.6300 next. In other words, the current bearish phase is still healthy and we lowered the stop-loss further to 0.6500 from 0.6560 previously (0.6455 is already a strong resistance)."
Key Quotes:
"That said, the immediate risk is still clearly on the downside and any recovery is not expected to move above 0.6455.
Instead of slowing down, the NZD down-trend accelerated lower and as mentioned previously, a break below 0.6380 would target a move to 0.6300 next. In other words, the current bearish phase is still healthy and we lowered the stop-loss further to 0.6500 from 0.6560 previously (0.6455 is already a strong resistance)."