Fundamental Overview:
NZD/USD is expected to trade with risks skewed higher. It is underpinned by the Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment, Kiwi demand on buoyant NZD/CHF and soft EUR/NZD, GBP/NZD crosses. But NZD/USD gains are tempered by the positive USD sentiment and lower Fonterra Co-Operative Group Ltd's forecast for payouts to farmers and Kiwi sales on rebounding AUD/NZD cross.
Technical Comment:
Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at the oversold zone, 5 and 15-day moving averages are falling, although inside-day-range pattern was completed on Wednesday.
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 0.7880. A break of this target will move the pair further downwards to 0.7835. The pivot point stands at 0.8035. 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 0.8095 and the second target at 0.8145.
Resistance levels:
0.8095
0.8145
0.8175
Support levels:
0.7880
0.7835
0.78
The material has been provided by InstaForex Company - www.instaforex.com
