Fundamental overview:
NZD/USD is expected to consolidate with bearish bias. It is undermined by the expectations that the Reserve Bank of New Zealand will leave rates on hold for longer. the pair is also weakened by broadly firmer USD undertone, kiwi sales on soft NZD/JPY cross amid increased investor risk aversion and weak commodity prices. NZD/USD losses are tempered by the kiwi demand on soft AUD/NZD cross and NZD-USD interest differential.
Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, although the latter is at oversold levels. Five- and 15-day moving averages are 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 the pivot point. Short positions are recommended with the first target at 0.74. A break of this target will move the pair further downward to 0.7325. The pivot point stands at 0.75. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 0.7580 and the second target at 0.7625.
Resistance levels:
0.7580
0.7625
0.7635
Support levels:
0.74
0.7325
0.73
The material has been provided by InstaForex Company - www.instaforex.com
