Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias. It is undermined by the positive dollar sentiment and weak sentiment surrounding commodity-linked currencies as oil prices tumble. But NZD/USD downside move is limited by the Kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion and Kiwi demand on soft AUD/NZD cross, on buoyant NZD/CAD cross, and NZD-USD interest differential.
Technical comment:
The daily chart is still positive-biased as MACD and stochastics are in a bullish mode, a five-day moving average is rising above a 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 0.7455 and the second target at 0.75. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7325. A break of this target would push the pair further downwards, and one may expect the second target at 0.7280. The pivot point is at 0.7365.
Resistance levels:
0.7455
0.75
0.7530
Support levels:
0.7325
0.7280
0.7220
The material has been provided by InstaForex Company - www.instaforex.com
