Fundamental overview:
NZD/USD is expected to trade with a bullish bias. It is supported by the positive dollar sentiment (VIX fear gauge eased 12.74% to 21.99; S&P 500 closed up 1.29% at 1,886.76 Friday) after surprise rise in University of Michigan preliminary U.S. October consumer sentiment index to 86.4 from the final September reading of 84.6 (versus forecast 84.0) and stronger-than-expected 6.3% on-month increase in U.S. September housing starts (versus forecast +4.6%). But NZD/USD losses are tempered by the Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment, NZD-USD interest differential and firmer dairy prices.
Technical comment:
Daily chart is still positive-biased as MACD and stochastics is in bullish mode five-day moving average above 15-day MA and is advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.8 and the second target at 0.8050. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7840. A break of this target would push the pair further downwards and one may expect the second target at 0.8. The pivot point is at 0.7885.
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
