Fundamental overview:
NZD/USD is to trade in a lower range. The pair is supported by the positive dollar sentiment (ICE spot dollar index last 86.15 versus 85.98 early Thursday) after slightly more-hawkish-than-expected policy statement from the Federal Reserve on Wednesday; stronger-than-expected 3.5% annual growth in U.S. 3Q GDP (versus forecast +3.1%), although details to the report were less rosy; 250 drop in four-week moving average for U.S. initial jobless claims to 281,000 in week ended Oct. 25, the lowest average reading since May 2000, Kiwi sales on buoyant AUD/NZD cross, and positions adjustment before the weekend. But NZD/USD gains tempered by Kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion and NZD-USD interest differential.
Technical comment:
Daily chart is mixed as MACD is bullish, but stochastics is in a bearish mode.
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 0.7765. A break of this target will move the pair further downwards to 0.7700. The pivot point stands at 0.79. 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 0.7955 and the second target at 0.7990.
Resistance levels:
0.7955
0.7990
0.8045
Support levels:
0.7765
0.77
0.7665
The material has been provided by InstaForex Company - www.instaforex.com
