Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the positive dollar sentiment and soft commodity prices. But Kiwi sentiment are soothed by the narrower-than-expected New Zealand November trade deficit of NZ$213 million (versus forecast NZ$550 million deficit). NZD/USD losses are also tempered by the Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment as well as NZD-USD interest differential.
Technical Comment:
Daily chart is mixed as five and 15-day moving averages are declining, but MACD and stochastics are neutral.
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 0.7710. A break of this target will move the pair further downward to 0.7685. The pivot point stands at 0.7770. 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 0.7795 and the second target at 0.7835.
Resistance levels:
0.7795
0.7835
0.7870
Support levels:
0.7710
0.7685
0.7660
The material has been provided by InstaForex Company - www.instaforex.com
