mikeyjerou Posted May 17, 2012 Report Share Posted May 17, 2012 FXstreet.com (Barcelona) - The Kiwi has been the main laggard even since the explosion of the ongoing wave of risk aversion hitting the markets as of late. NZD/USD, after making fresh trend lows at 0.7620 in the latest Europen trade, has managed to stage a minor recovery, although 0.7670/80 resistance remains a tough hurdle to overcome so far. According to Axel Rudolph, FX Strategist at CommerzBank: "The decline has so far taken it to just above the 78.6% Fibonacci retracement of the November- to-February advance at .7607. This is expected to give way with the October, November and December lows at .7469/.7371 then being in view, where some consolidation kicking in i expected, though, at least for a few days." Alex adds: "This support zone is expected to be fallen through, however, in which case the 200 week moving average at .7168 and the 2011 low at .7116 will be back in play. These now represent our medium term downside targets. Resistance is seen between the 6th of January low at .7774 and the 61.8% Fibonacci retracement at .7792. While trading below here, immediate downside pressure will be maintained." Quote Link to comment Share on other sites More sharing options...
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