Fundamental overview:
NZD/USD is expected to trade in a higher range. NZD sentiment is boosted by stronger-than-expected 1.5% on-quarter growth in New Zealand 3Q retail sales (versus forecast +0.9%). NZD/USD is also supported by the broadly weaker dollar undertone; speculation about earlier-than-expected RBNZ rate rises in 2015, NZD-USD interest differential and Kiwi demand on buoyant NZD/JPY cross amid subdued investor risk aversion and the weak yen sentiment as well as Kiwi demand on soft GBP/NZD and AUD/NZD crosses.
Technical comment:
Daily chart is positive-biased as bullish outside-day-range pattern was completed on Friday, MACD and stochastics is bullish; five-day moving average is above 15-day moving average and is advancing.
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 0.7975. A break of this target will move the pair further downwards to 0.8005. The pivot point stands at 0.7870. 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 0.7805 and the second target at 0.7770.
Resistance levels:
0.7975
0.8005
0.8035
Support levels:
0.7805
0.7770
0.7750
The material has been provided by InstaForex Company - www.instaforex.com
