Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias. NZD/USD is supported by broadly weaker dollar undertone (ICE spot dollar index last 87.98 versus 88.30 early Monday) as oil prices rebound (Nymex crude hit four-and-a-half year low of $63.72/bbl Monday but settled up $2.85 at $69.00/bbl), rebounding commodity prices and NZD-USD interest differential and Kiwi demand on soft AUD/NZD cross. But NZD/USD gains are tempered by the decreased investor risk appetite.
Technical Comment:
Daily chart is mixed as bullish outside-day-range pattern was completed on Monday, MACD is bullish but stochastics is in a bearish mode.
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 0.7805. A break of this target will move the pair further downwards to 0.7775. The pivot point stands at 0.7870. 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 0.79 and the second target at 0.7945.
Resistance levels:
0.79
0.7945
0.7975
Support levels:
0.7805
0.7775
0.7750
The material has been provided by InstaForex Company - www.instaforex.com
