Fundamental overview:
NZD/USD is expected to trade in a lower range. NZD sentiment is dented by 3.1% drop in Fonterra's GDT Price Index at latest Global DairyTrade auction. NZD/USD is also weighed by the Kiwi sales on rebounding AUD/NZD cross. But NZD/USD downside is limited by the Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment and NZD-USD interest differential. Daily chart is still positive-biased as MACD and stochastics are bullish, five-day moving average is above 15-day moving average and advancing, although inside-day-range pattern was completed on Tuesday.
Technical comment:
Daily chart is still positive-biased as MACD and stochastics are bullish, five-day moving average is above 15-day moving average and advancing, although inside-day-range pattern was completed on Tuesday.
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 0.9555. A break of this target will move the pair further downwards to 0.7830. The pivot point stands at0.7910. 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 0.7965 and the second target at 0.8005.
Resistance levels:
0.7965
0.8005
0.8050
Support levels:
0.7830
0.7790
0.7750
The material has been provided by InstaForex Company - www.instaforex.com
