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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 …read more