Fundamental overview:
NZD/USD is expected to trade in a higher range. It is supported by the weaker dollar sentiment (ICE spot dollar index last 85.57 versus 85.69 early Monday) on smaller-than-expected +0.3% on-month increase in U.S. September pending home sales index (versus forecast +1.0%), Kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the waning investor risk appetite.
Technical comment:
Daily chart is mixed as MACD is bullish but stochastics is in a bearish mode, five-day moving average is below 15-day MA and is declining.
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 0.7955 and the second target at 0.7990. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 10.7840. A break of this target would push the pair further downwards and one may expect the second target at 0.7805 The pivot point is at 0.7880.
Resistance levels:
0.7955
0.7990
0.8035
Support levels:
0.7840
0.7805
0.7775
The material has been provided by InstaForex Company - www.instaforex.com
