Fundamental overview:
NZD/USD is expected to range-trade. It is supported by the falling U.S. Treasury yields. But NZD/USD upside is limited by the weak dairy prices, threat of central bank intervention to weaken NZD, the kiwi sales on buoyant AUD/NZD and EUR/NZD crosses and on soft NZD/JPY cross amid stronger yen sentiment and increased investor risk aversion.
Technical comment:
Daily chart is mixed as stochastics is rising from oversold but MACD is still in bearish mode.
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 0.7835 and the second target at 0.7870. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7765. A break of this target would push the pair further downwards and one may expect the second target at 0.7730. The pivot point is at 0.7780.
Resistance levels:
0.7835
0.7870
0.7910
Support levels:
0.7765
0.7730
0.77
The material has been provided by InstaForex Company - www.instaforex.com
