Overview:
NZD/USD is expected to trade in a range. It is supported by the weaker dollar sentiment and NZD-USD interest differential. But NZD/USD upside is limited by the waning investor risk appetite, Kiwi sales on buoyant AUD/NZD cross abd reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year as well as the official stance against strong Kiwi exchange rate. The daily chart is still positive-biased as stochastics is rising from oversold, MACD staged bullish crossover against its exponential moving average, although inside-day-range pattern was completed on Friday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.8510 and the second target at 0.8530. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8415. A break of this target would push the pair further downwards and one may expect the second target at 0.8395. The pivot point is at 0.8440.
Resistance levels:
0.8510
0.8530
0.8560
Support levels:
0.8415
0.8395
0.8375
The material has been provided by InstaForex Company - www.instaforex.com
