NZD/USD Weekly Technical Report 7-11/1/2013

Momentum indicators offer overbought signals but the pair is trading above significant levels such as 0.8435 and 0.8355 levels. Therefore, the upside move is still available due to stability above the mentioned levels, but heavy fluctuation is likely due to overbought signals mentioned. Breaking 0.8305 levels might weaken the positivity.

The trading range for this week might be among key support at 0.8050 and key resistance at 0.8480.

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

Support 0.8235 0.8200 0.8160 0.8135 0.8100

Resistance 0.8310 0.8355 0.8385 0.8400 0.8415

Recommendation Based on the charts and explanations above, our opinion is buying the pair above 0.8235 targeting 0.8310, 0.8355 then 0.8400 and stop-loss with four-hour closing below 0.8135 might be appropriate this week