Fundamental overview:
NZD/USD is expected to trade in higher range. It is supported by the firmer dairy prices, kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion, kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the positive dollar sentiment.
Technical comment:
Daily chart is mixed as MACD and stochastic indicators are in bullish mode but five and 15-day moving averages are meandering sideways, inside-day-range pattern was completed on Wednesday.
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 0.7820 and the second target at 0.7850. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7720. A break of this target would push the pair further downward and one may expect the second target at 0.7680. The pivot point is at 0.7755.
Resistance levels:
0.7820
0.7850
0.7875
Support levels:
0.7720
0.7680
0.7650
The material has been provided by InstaForex Company - www.instaforex.com
