Fundamental overview:
NZD/USD is expected to consolidate after hitting a three-week low at 0.7727 on Thursday. NZD/USD is under undermined by diminished investor risk appetite. But NZD/USD downside is limited by the Kiwi demand on soft AUD/NZD cross, broadly weaker USD undertone, NZD-USD interest differential and positions adjustment before the weekend.
Technical Comment:
Daily chart is still 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 0.7680. A break of this target will move the pair further downwards to 0.7655. The pivot point stands at 0.7790. 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 0.7820 and the second target at 0.7850.
Resistance levels:
0.7850
0.7820
0.7785
Support levels:
0.7680
0.7655
0.7625
The material has been provided by InstaForex Company - www.instaforex.com
