Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the positive dollar sentiment, weak commodity and dairy prices and Kiwi sales on rebounding AUD/NZD cross. But NZD/USD losses are tempered by the positive investor risk appetite and NZD-USD interest differential.
Technical Comment:
Daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is declining.
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 0.7710. A break of this target will move the pair further downwards to 0.7680. The pivot point stands at 0.7785. 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 0.7710 and the second target at 0.7680.
Resistance levels:
0.7830
0.7855
0.7890
Support levels:
0.7710
0.7680
0.7635
The material has been provided by InstaForex Company - www.instaforex.com
