Fundamental overview:
NZD/USD is expected to trade with risks skewed to downside after hitting a seven-day high 0.7870 on Thursday. It is undermined by the positive dollar sentiment, receding investor risk appetite, weak commodity prices and drop in BNZ Business Performance of Manufacturing Index to a four-month low of 55.2 in November from downwardly revised 58.9 in October. But NZD/USD losses are tempered by the less dovish than expected policy statement of the Reserve Bank of New Zealand on Thursday, the kiwi demand on soft AUD/NZD cross, NZD-USD interest differential and positions adjustment ahead of the weekend. The daily chart is tilting positive as stochastics is rising from oversold levels, the MACD histogram bars are turning positive.
Technical Comment:
The daily chart is mixed as the MACD is bearish, but stochastics is turned bullish at oversold levels.
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 the pivot point. Short positions are recommended with the first target at 0.7765. A break of this target will move the pair further downward to 0.7730. The pivot point stands at 0.7835. In case the price moves in the opposite direction and bounces back from the support level, 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 0.7870 and the second target at 0.7905.
Resistance levels:
0.7870
0.7905
0.7945
Support levels:
0.7765
0.7730
0.77
The material has been provided by InstaForex Company - www.instaforex.com
