Overview:
NZD/USD is expected to trade in a lower range. The NZD sentiment is dented by 1.0% on-quarter drop in New Zealand 2Q producer input prices and 0.5% drop in producer output prices. NZD/USD is also undermined by the positive dollar sentiment;=, soft commodity & dairy prices, 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. But NZD/USD downside is limited by the Kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion and NZD-USD interest differential. The daily chart is still positive-biased as MACD and stochastics is in a bullish mode.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8415. A break of this target will move the pair further downwards to 0.8395. The pivot point stands at 0.8470. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8495 and the second target at 0.8530.
Resistance levels:
0.8495
0.8530
0.8560
Support levels:
0.8415
0.8395
0.8375
The material has been provided by InstaForex Company - www.instaforex.com
