30 Oct 2013
Flash: NZD/USD, deeper test of 0.8230/0.8165 support likely - JPMorgan
FXstreet.com (Barcelona) - After the topside failure at the important April highs, the focus for the NZD/USD now is on the important .8230/.8165 support zone, notes Niall O'Connor, FX Strategist at JPMorgan.
Key Quotes
"This area includes the early-October lows, the 38.2% retracement of the rally form the June low, the 200- day moving average and the September breakout area."
"Given the strong confluence of key support levels, we sense a downside break will be a tough task unless risk sentiment takes a more significant turn."
"Still, given that the short term momentum setup has yet to fully unwind the overbought and diverging momentum setup, a deeper test of this important zone seems likely."
Key Quotes
"This area includes the early-October lows, the 38.2% retracement of the rally form the June low, the 200- day moving average and the September breakout area."
"Given the strong confluence of key support levels, we sense a downside break will be a tough task unless risk sentiment takes a more significant turn."
"Still, given that the short term momentum setup has yet to fully unwind the overbought and diverging momentum setup, a deeper test of this important zone seems likely."