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25 Nov 2013
Flash: NZD/USD ‘headfake’ pattern a strong bullish signal - BNZ
FXstreet.com (Barcelona) - According to Bank of New Zealand, last week's ‘headfake’ pattern in NZD/USD, losing the 200-day m.a only to close back above it, "is a strongly bullish signal, and may bolster the appeal of the NZD this week" the bank said.
Key Quotes
" ‘Fundamental’ type indicators likewise point to additional NZD gains ahead. According to our QEadjusted short-term valuation model, fundamental ‘fairvalue’ for the NZD/USD held steady around 0.8650 last week."
"Going against the grain of the above drivers is negative momentum which, according to our momentum model, will remain in place while the NZD/USD trades below 0.8360. This somewhat mixed set of indicators suggests the NZD/USD may continue to drift sideways this week. This is especially so given the dearth of big market moving events on this week’s calendar. However, we continue to believe another probe to the topside is likely before year-end. Our Q4 forecast is still 0.8400."
Key Quotes
" ‘Fundamental’ type indicators likewise point to additional NZD gains ahead. According to our QEadjusted short-term valuation model, fundamental ‘fairvalue’ for the NZD/USD held steady around 0.8650 last week."
"Going against the grain of the above drivers is negative momentum which, according to our momentum model, will remain in place while the NZD/USD trades below 0.8360. This somewhat mixed set of indicators suggests the NZD/USD may continue to drift sideways this week. This is especially so given the dearth of big market moving events on this week’s calendar. However, we continue to believe another probe to the topside is likely before year-end. Our Q4 forecast is still 0.8400."