Forex Flash: NZD/USD support at 0.8230/0.8155 key now - JPMorgan
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NZD/USD
FXstreet.com (Barcelona) - Medium term range action will prevail in NZDUSD, says the FX team at JPMorgan; "given the current overbought momentum extreme, the short term backdrop can allow for some consolidation against these levels" the bank said.
After the failure at .8475-.8500 resistance, - medium term range highs back to February, 76.4% retracement of the decline from the 2011 cycle peak - "support at the .8230/.8155 zone will now be key as it represents the December low as well as the uptrendline from the June low" JPM notes. Violations suggest a bearish shift and extended corrective phase into .8000/.7850."
Until then, "the upside risks will remain intact as the price action since last year's low continues to develop in a series of higher-lows. Breaks of the .8500 resistance area would shift the focus back to the critical .8845 cycle peak from 2011" JPM said.
After the failure at .8475-.8500 resistance, - medium term range highs back to February, 76.4% retracement of the decline from the 2011 cycle peak - "support at the .8230/.8155 zone will now be key as it represents the December low as well as the uptrendline from the June low" JPM notes. Violations suggest a bearish shift and extended corrective phase into .8000/.7850."
Until then, "the upside risks will remain intact as the price action since last year's low continues to develop in a series of higher-lows. Breaks of the .8500 resistance area would shift the focus back to the critical .8845 cycle peak from 2011" JPM said.
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