NZDUSD: Broad consolidation still has near term downside risks - Westpac

Tim Riddell, Research Analyst at Westpac, notes that the medium term 50% retracement (0.7485) capped rebounds for the NZDUSD pair and rolling (negative) monthly momentum suggests further pullbacks within broad consolidation.

Key Quotes

“Bias remains for deeper retracement pullbacks.”

“Weekly

• Weekly momentum is now low, but not turning (yet).  

• Rising support us under threat and bias remains for an eventual break. Rebounds should be short-lived and for pullbacks to continue into the 0.6650-0.6800 zone.

“Daily

• Daily momentum has turned positive, but is seen as indicating a pause/rebound after the recent sharp slide.

• Rebounds ought to falter in the 0.7000-50 area to affirm the current bias for deeper downside retracements.”