Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the wider-than-expected New Zealand September trade deficit of NZ$1.35 billion (versus forecast NZ$675 million deficit), positive USD sentiment and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the NZD-USD interest differential, Kiwi demand on buoyant NZD/JPY cross amid positive risk sentiment and positions adjustment before the weekend.
Technical comment:
Daily chart is mixed as MACD is bullish, but stochastics is falling from overbought.
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 0.7805. A break of this target will move the pair further downwards to 0.7775. The pivot point stands at 0.7885. In case the price moves in the opposite direction and bounces back from the support level, then it will move 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 0.7915 and the second target at 0.7885.
Resistance levels:
0.7915
0.7955
0.7985
Support levels:
0.7805
0.7775
0.7735
The material has been provided by InstaForex Company - www.instaforex.com
