21 Aug 2013
NZD/USD unwinds to fresh lows amidst vulnerability
FXstreet.com (New York) - The NZD/USD foreign exchange rate tumbled to fresh lows Wednesday morning, extending yesterdays staunch decline during Asian trading.
Technically speaking, the NZD/USD is now operating at 0.7955, incurring fresh losses of -0.25% off its opening thus far. “The lack of rebounds after a 200 pips slide from weekly top to bottom is indicative of low buying participation, with price now likely to test bids at 0.7940/50 - convergence with 50% fib from 0.7730 to 0.8170 run -, where a break lower - hourly candle below required - may set stage for fresh weekly lows towards 0.79 round number - 61.8% fib-. On the upside, buyers should retake 0.80 - multiple failures Tuesday - to gain confidence for a recovery towards 0.8050” notes Ivan Delgado, Head of Asian Editors at FXstreet.com.
NZD/USD strategic bias
According to Adam Button at Forex Live, “Although the removal of monetary stimulus will likely be needed in the future for the RBNZ, we expect to keep the OCR unchanged through the end of the year.” The main reason he cited was the growing momentum in the housing market. This is a misguided policy that will limit access for first-time home buyers and it probably won’t curb house price appreciation (prices rose 8.1% YoY through July). In the meantime, the NZD/JPY shows a Head & Shoulders pattern within a Head & Shoulders pattern.”
“It continues to be a dangerous proposition to shift one's trading profile to buy dips on the NZD/USD, with price action offering no indications that the bearish tide may turn anytime soon,” Delgado warns.
Technically speaking, the NZD/USD is now operating at 0.7955, incurring fresh losses of -0.25% off its opening thus far. “The lack of rebounds after a 200 pips slide from weekly top to bottom is indicative of low buying participation, with price now likely to test bids at 0.7940/50 - convergence with 50% fib from 0.7730 to 0.8170 run -, where a break lower - hourly candle below required - may set stage for fresh weekly lows towards 0.79 round number - 61.8% fib-. On the upside, buyers should retake 0.80 - multiple failures Tuesday - to gain confidence for a recovery towards 0.8050” notes Ivan Delgado, Head of Asian Editors at FXstreet.com.
NZD/USD strategic bias
According to Adam Button at Forex Live, “Although the removal of monetary stimulus will likely be needed in the future for the RBNZ, we expect to keep the OCR unchanged through the end of the year.” The main reason he cited was the growing momentum in the housing market. This is a misguided policy that will limit access for first-time home buyers and it probably won’t curb house price appreciation (prices rose 8.1% YoY through July). In the meantime, the NZD/JPY shows a Head & Shoulders pattern within a Head & Shoulders pattern.”
“It continues to be a dangerous proposition to shift one's trading profile to buy dips on the NZD/USD, with price action offering no indications that the bearish tide may turn anytime soon,” Delgado warns.