FX.co ★ NZD/USD: Technical Analysis for December 14, 2012

Overview:

The NZD/USD pair is expected to continue the movement from the point of 0.8300. Thus, the kiwi shows the signs of strength, following the breakdown of the highest level 0.8300. This fact can be considered as a good signal for BUY deals above this strong support (0.8300) with the first targets at 0.8370, 0.8433, and 0.8480 (it will serve as a strong resistance level and is considered to be appropriate for take profit orders). It is necessary to mention that this level will coincide with the weekly resistance 3 (0.8489). However, in case of the reverse movement and if the NZD/USD pair fails to break through the resistance level of 0.8489, the market will show a further decline to the level of 0.8400 indicating a bearish mood in order to retest the weekly resistance 2 (it had already become a support) at the level of 0.8312.

Range: R - S = 0.8490 - 0.8300 = 190 pips.
Strong Resistance: 0.8490
Strong Support: 0.8300
Volatility: 146.19. Therefore, the market indicates the higher volatility.

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