Fundamental overview:
NZD/USD is expected to trade in a higher range. It is supported by the weaker dollar sentiment (ICE spot dollar index last 87.67 versus 87.89 early Wednesday) after more-than-expected 313,000 U.S. jobless claims in week ended Nov. 22 (versus forecast 289,000); larger-than-expected drop in ISM-Chicago PMI to 60.8 in November from October's 66.2 (versus forecast 64.0); less-than-expected 0.2% increase in U.S. October personal income (versus forecast +0.4%) and 0.2% increase in spending (versus forecast +0.3%), fewer-than-expected U.S. October new home sales of 458,000 (versus forecast 470,000); unexpected 1.1% drop in U.S. October pending home sales index (versus forecast for 0.5% rise), weaker-than-expected November University of Michigan final consumer sentiment index of 88.8 versus forecast 90.0 and preliminary reading of 89.4, Kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD sentiment is dented by the wider-than-expected New Zealand October trade deficit of NZ$908 million (versus forecast deficit NZ$800 million).
Technical Comment:
Daily chart is mixed as MACD is bullish, but stochastics is in a bearish mode.
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 0.7975. 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 0.78. The pivot point is at 0.7845.
Resistance levels:
0.9675
0.9720
0.9740
Support levels:
0.9580
0.9555
0.9515
The material has been provided by InstaForex Company - www.instaforex.com
