Commodity Currencies Weekly Technicals 16 October 2013

NZD/USD – Daily Chart


Bounces off the 200 day moving average at .8183 and targets the .8462/.8500 region


Our short term NZD/USD forecast has been changed from bearish to bullish now that the 2013 resistance line at .9397 has been breached.

The September high at .8437 should also soon be bettered with the 78.6% Fibonacci retracement at .8465 and the .8500 region also being targeted. In this area the currency pair may well struggle, however.

In case of a more pronounced advance being seen, the .8588 late April high and the 2011-13 resistance line at .8627 could also be reached.

We will retain our short term bullish forecast while NZD/USD trades above last week’s low at .8232.

Unexpected failure there this week would neutralise our view and put the 200 day moving average at .8183 back on the cards.

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