Fundamental overview:
NZD/USD is expected to trade in a range. It is undermined by the increased investor risk aversion and Kiwi sales on soft NZD/CHF cross. But NZD/USD downside is limited by the Kiwi demand for buoyant NZD/CAD and for soft EUR/NZD, GBP/NZD, AUD/NZD crosses, NZD-USD interest differential as well as positions adjustment ahead of the weekend.
Technical comment:
Daily chart is mixed as MACD histogram bars are turned positive, but stochastics is neutral.
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 0.79 and the second target at 0.7930. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7755. A break of this target would push the pair further downwards and one may expect the second target at 0.7720. The pivot point is at 0.7755.
Resistance levels:
0.79
0.7930
0.7975
Support levels:
0.7720
0.7690
0.7650
The material has been provided by InstaForex Company - www.instaforex.com
