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.
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