(Bloomberg) -- The New Zealand dollar, which rose to an 11-month high against the yen, is poised to extend its gains, Citigroup Inc. said, citing technical charts.
The currency is set to test its next “key” level of 67.75 yen after breaking above so-called resistance at 65.90 without triggering a sell-off, the bank said. The New Zealand dollar was at 65.98 yen as of 12:42 p.m. in London, after trading at 66.06 today, the strongest since Oct. 7 last year.“Trend support is still in place” for the New Zealand dollar, Citigroup analysts including New York-based Tom Fitzpatrick and London-based Shyam Devani wrote in a report today. “The reverse head and shoulders suggests a rally up to the resistance area around 67.70/75.”
The New Zealand dollar, or kiwi, gained this year against every one of the 16 major currencies tracked by Bloomberg except the Brazilian real and the South African rand as signs of economic recovery spurred demand for higher-yielding currencies.
A head and shoulders is formed when a currency makes three consecutive peaks, with the middle being the highest. A neckline, which is also a support level, is drawn across the base of the three peaks. Resistance levels are where sell orders may be clustered. Support levels are where buy orders may be concentrated. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.
No comments:
Post a Comment