Fundamental overview:
NZD/USD is expected to trade in higher range.It is supported by the kiwi demand on buoyant NZD/JPY cross amid positive risk sentiment and the kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the positive dollar sentiment (ICE spot dollar index last 89.21 versus 89.07 on early Thursday) on fewer than expected 289,000 U.S. jobless claims for a week ended on December 13 (versus forecast 295,000).
Technical Comment:
The daily chart is mixed as the MACD and stochastics are neutral.
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 0.7810 and the second target at 0.7835. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7670. A break of this target would push the pair further downwards and one may expect the second target at 0.7625. The pivot point is at 0.7735.
Resistance levels:
0.7810
0.7835
0.7870
Support levels:
0.7670
0.7625
0.7585
The material has been provided by InstaForex Company - www.instaforex.com
