Fundamental Overview:
NZD/USD is expected to trade in a lower range. NZD/USD is supported by Kiwi demand on cross trades versus major currencies. But NZD/USD gains are tempered by the positive dollar sentiment, waning investor risk appetite and threat of the central bank intervened to weaken the NZD. It is supported by the positive dollar sentiment (ICE spot dollar index hit four-year-high 86.218 Tuesday, last at 85.93 versus 85.62 early Tuesday) on relatively hawkish Federal Reserve's monetary policy and outperformance of the U.S. economy versus other major economies.
Technical Comment:
Daily chart is still negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, 5 and 15-day moving averages falling, although inside-day-range pattern was completed on Tuesday.
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 0.7730. A break of this target will move the pair further downwards to 0.77. The pivot point stands at 0.7830. 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 0.7910 and the second target at 0.7955.
Resistance levels:
0.7910
0.7955
0.8035
Support levels:
0.7730
0.77
0.7675
The material has been provided by InstaForex Company - www.instaforex.com
