NZD/USD: Seasonality: Down 28 Of 40 Times In May, Bearish SMA Cross – BofA


What is the short-term outlook for NZD/USD?

Here is their view, courtesy of eFXdata:

Bank of America Global Research discusses NZD/USD seasonal pattern during the month of May.

While we hold a constructive medium-term view on NZD/USD, the shorter term may be vulnerable to another correction. The late February rally above .7300 was quickly reversed and now spot is testing this figure as resistance again,” BofA notes.

“The 50d SMA just crossed below the 100d SMA. In the past after this cross, NZD/USD declined 17 of 27 times ten to twenty days later or about 63% of the time. While below .7300, a decline to the 200d SMA at .6924 (and rising) may occur,” BofA adds.

m90.PNGFor lots more FX trades from major banks, sign up to eFXplus

By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.