Commodity Currencies Weekly Technicals 23 October 2013

NZD/USD – Daily Chart


Negative divergence points to a short term trend reversal while .8545 is not being bettered


NZD/USD reached and is now coming off the .8500 region as previously forecast.

The negative divergence seen with the daily RSI points to at least a short term sell-off which is why long positions should be exited and why we have neutralised our medium term outlook.

Immediate downside targets are the .8352 early October high and then the .8232/.8164 significant support zone. It is where the October lows, 200 day moving average and the
August peak are to be found.

In case of an unexpected rise above the current October high at .8545 being seen, the .8588 late April high and the 2011-13 resistance line at .8625 could also be reached. This we do not expect to happen at the moment, though.

Only a drop through .8164 would skew the technical picture back towards the .7800/.7683 region.

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