24 Sep 2013
Flash: NZD/USD has potential for 0.8625/30 - ANZ
FXstreet.com (Barcelona) - The latest surge in NZD/USD has led Tim Riddell, Head of Global Markets Research at ANZ, to believe that the potential for a test of declining resistance at 0.8625-30 and previous high in the 0.8790-0.8845 area is now possible.
Key Quotes
"This no longer looks like a corrective squeeze, but rather a relatively dynamic leg within the broad consolidation pattern (or triangle) that has been developing since 2011.
"Whenever moves extend, as now, dips will be critical. Ideally 0.8340 will prove sound support As noted, the rally from the late August low of 0.7720 no longer looks like a corrective spike, but rather a more dynamic push through the range of the past two years. A close above 0.8475 could therefore hail a squeeze through declining resistance towards the 0.8790-0.8845 area."
"Once again, the stretched nature of the recent gains means that dips ought to remain above 0.8340 to maintain upside potential. Any deeper slippage will raise concerns over some deep pullbacks, with 0.8250 acting as a downside pivot point."
Key Quotes
"This no longer looks like a corrective squeeze, but rather a relatively dynamic leg within the broad consolidation pattern (or triangle) that has been developing since 2011.
"Whenever moves extend, as now, dips will be critical. Ideally 0.8340 will prove sound support As noted, the rally from the late August low of 0.7720 no longer looks like a corrective spike, but rather a more dynamic push through the range of the past two years. A close above 0.8475 could therefore hail a squeeze through declining resistance towards the 0.8790-0.8845 area."
"Once again, the stretched nature of the recent gains means that dips ought to remain above 0.8340 to maintain upside potential. Any deeper slippage will raise concerns over some deep pullbacks, with 0.8250 acting as a downside pivot point."