Fundamental overview:
NZD/USD is expected to consolidate in a higher range as markets await the U.S. non-farm payrolls report. The kiwi sentiment is boosted by a 10.0% increase in New Zealand's November building consents (versus October's +8.8%). NZD/USD is also supported by firmer dairy prices, the kiwi demand on the buoyant NZD/JPY cross amid positive risk sentiment and the kiwi demand on the soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the positive dollar sentiment and positions adjustment ahead of weekend.
Technical comment:
The daily chart is mixed as MACD and stochastic are indicators in a bullish mode but five and 15-day moving averages are meandering sideways.
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 0.7850 and the second target at 0.7890. 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:
0.7850
0.7890
0.7945
Support levels:
0.7720
0.7680
0.7650
The material has been provided by InstaForex Company - www.instaforex.com
