Fundamental overview:
NZD/USD is expected to trade in a higher range. It is supported by the positive investor risk appetite, Kiwi demand on soft AUD/NZD cross andNZD-USD interest differential. USD sentiment is tempered by more-than-expected 291,000 U.S. jobless claims in week ended Nov. 15 (versus forecast 283,000), weaker-than-expected Markit flash U.S. November manufacturing PMI of 54.7, the lowest in 10 months (versus forecast 56.0). But NZD/USD gains are tempered by the weak dairy prices and positions adjustment ahead of the weekend.
Data focus:
0200 GMT New Zealand October credit card statistics.
Technical comment:
Daily chart is mixed as stochastics is bearish near overbought levels but MACD is in bullish mode, bullish hammer candlestick pattern was completed on Thursday.
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 0.7920 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 0.7820. A break of this target would push the pair further downwards and one may expect the second target at 0.7790. The pivot point is at 0.7850.
Resistance levels:
0.7920
0.7965
0.8005
Support levels:
0.7820
0.7790
0.7750
The material has been provided by InstaForex Company - www.instaforex.com
