Commodity Currencies Weekly Technicals 15 january 2014

NZD/USD – Daily Chart

The .8408/37 resistance area has been tested but caps at present; a top could still be formed

NZD/USD’s bounce off its .8117 late December low has so far taken it to .8432, to right within the .8408/37 resistance area, made up of the September/November highs.
We still believe that this resistance area will cap the currency pair and thus retain our neutral forecast.
In case of a daily close above .8437 being made, however, we will have to allow for the .8500 region and the October peak at .8545 to be revisited.
We believe that Australian Dollar weakness will continue and that short term New Zealand strength is likely to fizzle out within the next few days because AUD/NZD is approaching major support (please see pages 7&8).
While no daily chart close above .8437 is being made the 55 day moving average at .8250 and the five month support line at .8173 will be targeted on a fall through the .8336/19 support area which is being tested at present.
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