Fundamental overview:
NZD/USD is expected to trade in lower range. It is supported by the negative USD sentiment and 1.4% rise in Fonterra's GDT Price Index at latest Global DairyTrade auction and NZD demand on cross trades versus major currencies and NZD-USD interest differential. But NZD/USD gains are tempered by the increased risk aversion.
Technical comment:
Daily chart is positive-biased as bullish outside-day-range pattern was completed on Wednesday, MACD and stochastics are bullish, five-day moving average staged bullish crossover against 15-day MA.
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 0.7840. A break of this target will move the pair further downwards to 0.78. The pivot point stands at 0.7955. 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 0.8 and the second target at 0.8050.
Resistance levels:
0.8000
0.8050
0.8075
Support levels:
0.7840
0.78
0.7760
The material has been provided by InstaForex Company - www.instaforex.com
