Back
28 Aug 2013
Flash: NZD/USD offers false bullish hopes, exercise caution – ANZ
FXstreet.com (New York) - The NZD/USD failed to sustain the spike above 0.8100, which did trigger a “bull-trap”, which has loomed since first warned mid-August, suggests Tim Riddell, Head of Global Markets Research at ANZ.
Key quotes
“Rebounds off 0.7700 should therefore be seen as completing a correction on the spike to 0.8165 and that the broader downtrend has now resumed.
“Interim rebounds should now struggle to reach 0.7900-20 before slippage continues through 0.7690-00 to test 0.7600 and potentially last year’s 0.7450-60 low. A sharp rebound above 0.8010-20 is needed to alter this profile.”
Key quotes
“Rebounds off 0.7700 should therefore be seen as completing a correction on the spike to 0.8165 and that the broader downtrend has now resumed.
“Interim rebounds should now struggle to reach 0.7900-20 before slippage continues through 0.7690-00 to test 0.7600 and potentially last year’s 0.7450-60 low. A sharp rebound above 0.8010-20 is needed to alter this profile.”