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8 May 2015
NZD/CAD downtrend faltering; headed 0.9250? - TDS
FXStreet (Guatemala) - Analysts at TD Securities noted that NZD/CAD’s downtrend has stalled.
Key Quotes:
"And might reverse near-term".
"We noted signs that the sharp move lower in the NZD was steadying Thursday but the patter of price action over the past three days will now (likely) form bullish “morning star” reversal/key reversal signal—right around the 61.8% retracement of the Q4/Q1 rally."
"We still rather think rebounds will be limited ahead of another leg lower. The broader picture for NZD/CAD remains bearish and it will take a lot to change our opinion of where risks lie going forward."
"The longer-term bear case cannot be clearer (near the upper end of the historic range, big reversal signals forming on the longer-term charts). Major support from a long-term perspective remains 0.8620—a major (0.96) double top trigger which would, if broken, target a medium-term decline to 0.76. We want to fade any significant bounce in NZD/CAD from here and look for gains to remain limited to the 0.9150/0.9250 range."
Key Quotes:
"And might reverse near-term".
"We noted signs that the sharp move lower in the NZD was steadying Thursday but the patter of price action over the past three days will now (likely) form bullish “morning star” reversal/key reversal signal—right around the 61.8% retracement of the Q4/Q1 rally."
"We still rather think rebounds will be limited ahead of another leg lower. The broader picture for NZD/CAD remains bearish and it will take a lot to change our opinion of where risks lie going forward."
"The longer-term bear case cannot be clearer (near the upper end of the historic range, big reversal signals forming on the longer-term charts). Major support from a long-term perspective remains 0.8620—a major (0.96) double top trigger which would, if broken, target a medium-term decline to 0.76. We want to fade any significant bounce in NZD/CAD from here and look for gains to remain limited to the 0.9150/0.9250 range."