Fundamental overview:
NZD/USD is expected to consolidate after hitting a near-one-month low of 0.7616 on Monday. It is undermined by the positive USD sentiment, weak commodity prices; kiwi sales on buoyant AUD/NZD cross and kiwi sales on soft NZD/JPY cross amid increased investor risk aversion. But NZD/USD downside is limited by the NZD/USD interest differential and kiwi demand on soft EUR/NZD and GBP/NZD crosses.
Technical comment:
The daily chart is negative-biased as MACD and slow stochastic indicators are bearish, five-day moving average is falling below 15-day moving average.
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 0.7765 and the second target at 0.78. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7615. A break of this target would push the pair further downward and one may expect the second target at 0.7575. The pivot point is at 0.7650.
Resistance levels:
0.7765
0.78
0.7845
Support levels:
0.7615
0.7575
0.7535
The material has been provided by InstaForex Company - www.instaforex.com
