Fundamental overview:
NZD/USD is expected to trade in a higher range. It is supported after New Zealand 3Q adjusted employment rose 0.8% on-quarter and 3.2% on-year (versus forecast +0.6% on-quarter, +3.1% on-year). NZD/USD is also buoyed by softer dollar sentiment; Kiwi demand on buoyant NZD/JPY cross amid weak yen sentiment, NZD-USD interest differential and Kiwi demand on soft AUD/NZD cross. But NZD sentiment is dented by the 0.3% drop in Fonterra's GDT Price Index at the latest GlobalDairyTrade auction. NZD/USD gains are also tempered by the subdued investor risk appetite.
Technical comment:
Daily chart is tilting positive as MACD histogram bars are turning positive, stochastics is turning bullish at oversold zone.
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 0.7880 and the second target at 0.7950. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7745. A break of this target would push the pair further downwards and one may expect the second target at 0.77. The pivot point is at 0.7785 .
Resistance levels:
0.7880
0.7950
0.8010
Support levels:
0.7745
0.77
0.7665
The material has been provided by InstaForex Company - www.instaforex.com
