Commodity Currencies Weekly Technicals 18 February 2014

NZD/USD – Daily Chart


Showing signs of failure ahead of .8400, allow for slippage back into the 4 month trading range


NZD/USD has we suspect failed just ahead of the .8400 resistance, we note the minor resistance line at .8392 coupled with a TD perfected set up and directly overhead we have the tougher resistance offered by various peaks between .8408/37. Failure here will reinforce the trading range mentality and suggest losses back to the .8084 November low and the .8051 February low.

We therefore expect to see further range trading between the .8408/37 resistance area and the .8084/51 significant support zone and thus keep our neutral outlook.

In case of a daily close above .8437 being made (not favoured), 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 instead.

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