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NZD/USD: Deeper corrective phase underway - JPMorgan

FXStreet (Bali) - According to Niall O'Connor, FX Strategist at JP Morgan, the impulsive decline in NZD/USD suggests that a deeper corrective phase is underway, with retracements selling opportunities for a retest of the 2013 lows.

Key Quotes

"The breakdown in NZD/USD below medium term support over the past week affirms this developing view. Importantly, the violation of the .8050/.7955 support zone suggests the downside momentum is accelerating. This area represents the February low and the 76.4% retracement of the rally from the June ’13 low."

"As a result, we see potential for this decline to extend back to the critical .7722/.7683 zone and lows from 2013. From a short term perspective, we view near term corrective retracements as selling opportunities for a closer test of this target/support zone."

"Note that a violation of this area would confirm the onset of a more sustained decline in line with the large double top pattern with the 2011 and 2014 highs."

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