NZD/USD Weekly Technical Report 24-28/12/2012

The pair has dropped significantly recently and after topping at 0.8470 major resistance level, the price is heading towards the main ascending trend line for the whole bullish trend that started from 0.7500 lows, and currently settles below the 50-days SMA. We may see a short term rebound as price has gone extremely oversold over the lower timeframes, however, due to the strong bearish bias, we prefer to stay aside  awaiting further confirmation for the next potential move. 

The trading range for today might be among key support at  0.8000 and key  resistance at   0.8400 .

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

Support 0.8200 0.8170 0.8120 0.8100 0.8075

Resistance 0.8250 0.8275 0.8300 0.8330 0.8360

Recommendation Based on the charts and explanations above we recommend staying aside awaiting further confirmations.