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16 Jan 2015
NZD/USD aiming to test 0.7850 offers
FXStreet (Bali) - NZD/USD continues to march higher in Asia, following a deep retracement towards 0.7780 lows at the NY close, with the rate having recovered to currently exchange hands circa 0.7835/40 session highs.
The Kiwi was one of the main beneficiaries from the SNB shocker, with the Kiwi rising over 2 cents from lows (0.7696) to highs (0.7891) on Thursday, quite an outstanding ride before settling above 0.7780/0.78 now.
Amid the uncertainty created by the SNB, investors might be much more reluctant to seek carry-trade plays as volatiity picks up, although this line of thinking is so far proving wrong as per NZD performance. On the contrary, JPY and USD should do well under a more pronounced risk-off environment.
Jim Langlands, Founder at FXCharts, notes: "Above 0.7820, and a sustained break of the wedge top at 0.7830, would hint at a retest of the 0.7890 session high. Supports are now seen at the daily Tenkan/Kijun at 0.7750/35 respectively below which would head back to 0.7700 and possibly 0.7680."
The Kiwi was one of the main beneficiaries from the SNB shocker, with the Kiwi rising over 2 cents from lows (0.7696) to highs (0.7891) on Thursday, quite an outstanding ride before settling above 0.7780/0.78 now.
Amid the uncertainty created by the SNB, investors might be much more reluctant to seek carry-trade plays as volatiity picks up, although this line of thinking is so far proving wrong as per NZD performance. On the contrary, JPY and USD should do well under a more pronounced risk-off environment.
Jim Langlands, Founder at FXCharts, notes: "Above 0.7820, and a sustained break of the wedge top at 0.7830, would hint at a retest of the 0.7890 session high. Supports are now seen at the daily Tenkan/Kijun at 0.7750/35 respectively below which would head back to 0.7700 and possibly 0.7680."