Overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a six-month low at 0.8313 this morning. The NZD sentiment is dented by the wider-than-expected New Zealand July trade deficit of NZ$692 million (versus forecast NZ$500 million). NZD/USD is also weighed by the Kiwi sales on retreating NZD/JPY cross, weak dairy prices, reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the NZD-USD interest differential. The daily chart is negative-biased as MACD and stochastics are bearish, although the latter is in the oversold zone; 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 0.8300. A break of this target will move the pair further downwards to 0.8270. The pivot point stands at 0.8380. 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 0.8435 and the second target at 0.8465.
Resistance levels:
0.8435
0.8465
0.8490
Support levels:
0.83
0.827
0.8255
The material has been provided by InstaForex Company - www.instaforex.com
