Intraday Market Thoughts

Archived IMT (2010.11.22)

by Ashraf Laidi
Nov 22, 2010 18:26

AUSSIE, KIWI, OR BOTH? S&P's decision to place New Zealand foreign currency on negtaive outlook out of concern with its surging current account deficit running 3% of GDP. NZD already fell 1% against USD to 0.7690, with more downside seen at the Oct high of 0.7640, followed by 0.7570. But rather than simply chasing the Kiwi trade against USD or JPY, consider AUD losses vs. USD. AUDUSD Daily shows a possible Head & Shoulder formation with the failed right shoulder at 0.9958 before pulling back towards 0.9820s. prelim support seen standing at 0.9770, before the 0.9730 coincides with 55-day MA, a tech level which held since August. You must know by know the importance of those 55 MAs (daily & weekly) after the patterns with EURUSD, 10 year yields and USDX.


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