NZD/USD Weekly Technical Report 17-21/12/2012

The pair is trading above critical levels such as 0.8435 and 0.8355 despite overbought signals on Momentum Indicators. Therefore, the upside move remains valid due to stability above those levels, but high volatility is likely due to the overbought signals mentioned. Breaching 0.8305 might weaken the positivity.

The trading range for this week might be among key support at 0.8225 a nd key resistance at 0.8660 .

The general trend over short term basis is to the upside above 0.8130 targeting 0.8845.

Support 0.8415 0.8395 0.8355 0.8305 0.8285

Resistance 0.8470 0.8500 0.8545 0.8570 0.8615

Recommendation Based on the charts and explanations above, our opinion is buying the pair above 0.8395 targeting 0.8470, 0.8545 then 0.8570 and stop-loss with four-hour closing below 0.8305 might be appropriate this week