Fundamental overview:
NZD/USD is expected to consolidate with a bullish bias after hitting a two-week high 0.7905 on Wednesday. It is underpinned by the Kiwi demand on soft GBP/NZD, EUR/NZD and AUD/NZD crosses; and on buoyant NZD/JPY, NZD/CHF crosses. NZD/USD is also supported by NZD-USD interest differential. But NZD/USD gains are tempered by the decreased investor risk appetite.
Technical comment:
Daily chart positive-biased as MACD and stochastics are bullish, five-day moving average is rising above 15-day moving average.
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 0.7945 and the second target at 0.7965. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7805. A break of this target would push the pair further downwards and one may expect the second target at 0.7770. The pivot point is at 0.7850.
Resistance levels:
0.7945
0.7980
0.8
Support levels:
0.7805
0.7770
0.7750
The material has been provided by InstaForex Company - www.instaforex.com
