Commodity Currencies Weekly Technicals 05 February 2014

NZD/USD – Daily Chart

Is swiftly bouncing off the current February low at .8051 which was probably a false breakout

NZD/USD’s rejection by the .8408/37 resistance area, made up of the September/November highs, took it all the way to the current February low at .8051. From there it has swiftly shot up, though, and now trades back around the 55 day moving average at .8234.
This week’s rally leads us to believe that last week’s drop below the .8084 November low was nothing more than a false breakout to the downside.
We therefore expect to see further range trading between the .8408/37 resistance area and the .8084/51 significant support zone and thus neutral.
In case of a daily close above .8437 being made, we will have to allow for the .8500 region and the October peak at .8545 to be revisited.
A fall through the .8084/.51 support area would turn us bearish, and eye the psychological .8000 mark.
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