Overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a five-month low at 0.8362 on Wednesday. NZD/USD is undermined by the positive dollar sentiment, soft dairy prices and 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 and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment and NZD-USD interest differential. The daily chart is negative-biased as stochastics is in a bearish mode, MACD is turning bearish, five and 15-day moving averages are declining.
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 0.8345. A break of this target will move the pair further downwards to 0.83. The pivot point stands at 0.8420. 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 0.8440 and the second target at 0.8465.
Resistance levels:
0.8440
0.8465
0.8490
Support levels:
0.8345
0.83
0.8275
The material has been provided by InstaForex Company - www.instaforex.com
