Fundamental overview:
NZD/USD is expected to trade in a higher range after hitting a two-year low 0.7658 on Friday. It is underpinned by the weaker dollar sentiment (ICE spot dollar index last 87.52 versus 88.06 early Friday) after fewer-than-expected 214,000 increase in U.S. October non-farm payrolls (versus forecast +233,000) and less-than-expected 0.1% increase in U.S. October average hourly wages (versus forecast +0.2%), although the unemployment rate slipped to 5.8% from 5.9% in September (versus forecast for no change) and rebound in commodity prices, improved risk appetite and NZD-USD interest differential.
Technical comment:
Daily chart is mixed as MACD is bearish but stochastics is turning bullish to the oversold zone, bullish outside-day-range pattern was completed on Friday.
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 0.7840 and the second target at 0.7880. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7705. A break of this target would push the pair further downwards and one may expect the second target at 0.7645. The pivot point is at 0.7755.
Resistance levels:
0.7840
0.7880
0.79
Support levels:
0.7705
0.7645
0.76
The material has been provided by InstaForex Company - www.instaforex.com
