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3 Jun 2014
EUR/NZD in a basing process - JPMorgan
FXStreet (Bali) - EUR/NZD is in the midst of a short term basing process above the 1.5750/1.5600.
Key Quotes
"This area of support zone at 1.5750/1.56 includes the 76.4% retracement of the rally from the 2013 low (April)."
"Importantly, the double bottom near 1.5750 raises the risk that a deeper retracement can develop."
"Trendline resistance from the December ’13 peak at 1.6147 is the first key test for the pair. Still, a break above the 1.6287 late-April high would confirm the potential double bottom pattern implying an extension initially into the 1.6750/1.70 zone."
"However, a break above these initial resistance levels would give the decline from last year's high with a clear corrective bias while arguing for a more sustained rally."
Key Quotes
"This area of support zone at 1.5750/1.56 includes the 76.4% retracement of the rally from the 2013 low (April)."
"Importantly, the double bottom near 1.5750 raises the risk that a deeper retracement can develop."
"Trendline resistance from the December ’13 peak at 1.6147 is the first key test for the pair. Still, a break above the 1.6287 late-April high would confirm the potential double bottom pattern implying an extension initially into the 1.6750/1.70 zone."
"However, a break above these initial resistance levels would give the decline from last year's high with a clear corrective bias while arguing for a more sustained rally."