Commodity Currencies Weekly Technicals 18 December 2013

NZD/USD – Daily Chart

Could have ended a minor Elliott wave abc correction at .8336 and stays bearish while below it

NZD/USD rose in three distinctive waves, a, b and c, from its .8084 November low to last week’s high at .8336.

We will therefore have a short term bearish outlook while no daily chart close above the .8336 high is being made.

The significant support zone seen at .8166/.8084 (200 day moving average, October low, 50% retracement, July peak and November trough) is thus back in the picture.

Should a drop through the .8084 low be seen, the psychological .8000 zone and then the .7886/.7683 region (200 week moving average and the June to August lows) will be back on the map.

We will retain our view of a top being formed and the currency pair declining at the beginning of 2014 as long as NZD/USD stays below the .8408/16 November highs.

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