3 Feb 2015
NZD/USD downtrend firmly in place - FXCharts
FXStreet (Bali) - According to Jim Langlands, Founder at FXCharts, in the bigger picture, NZD/USD downtrend remains firmly in place, adding that if the RBA cut rates, the Kiwi is likely to fall in sympathy with the Aud, for an eventual fall to 0.6962 and 0.6538.
Key Quotes
"The 4 hour indicators still look positive and we could see a further squeeze, above today’s high, towards 0.7350 (downtrend resistance) and to 0.7370 (23.6% of 0.7880/0.7214), beyond which would take another look at 0.7400 and potentially at 0.7465."
"In the bigger picture though, the downtrend remains firmly in place and back below 0.7300 would revisit minor support at 0.7260 and the session low of 0.7241."
"If the RBA cut rates, the Kiwi is likely to fall in sympathy with the Aud (although it will receive some support through selling of the cross) and we could then be in for a test of 0.7200, below which there is little support to be seen until the spike low at 0.7115 (17 Mar 2011). Eventually I think we are headed towards 0.6962 (38.2% of 0.3900/0.8842) and possibly to the 200 Month MA at 0.6538, albeit that this is still a long way off."
Key Quotes
"The 4 hour indicators still look positive and we could see a further squeeze, above today’s high, towards 0.7350 (downtrend resistance) and to 0.7370 (23.6% of 0.7880/0.7214), beyond which would take another look at 0.7400 and potentially at 0.7465."
"In the bigger picture though, the downtrend remains firmly in place and back below 0.7300 would revisit minor support at 0.7260 and the session low of 0.7241."
"If the RBA cut rates, the Kiwi is likely to fall in sympathy with the Aud (although it will receive some support through selling of the cross) and we could then be in for a test of 0.7200, below which there is little support to be seen until the spike low at 0.7115 (17 Mar 2011). Eventually I think we are headed towards 0.6962 (38.2% of 0.3900/0.8842) and possibly to the 200 Month MA at 0.6538, albeit that this is still a long way off."