NZD/USD Weekly Technical Report 20-24/5/2013

The NZD/USD broke the long-term bullish channel's key support, making us expect the downtrend, which dominated for the past two weeks, is not sufficient to complete overall bearishness. The pair is steady below 0.8210, or 38.2% Fibonacci correction, allowing the downtrend to extend to 0.7920 at 61.8% correction, passing by 0.8065 at 50% correction. Note that breaking the latter is important to stimulate the intraday downtrend's continuation.

- Trading range expected this week is between the key support at 0.7920 and the key resistance 0.8355.

- Short-term trend is bullish targeting 0.8845 if 0.8130 remains intact on daily basis.