Fundamental overview:
NZD/USD is expected to consolidate in a higher range. The NZD sentiment is boosted by a rise in the New Zealand 4Q adjusted retail sales of +1.6% on-quarter (versus forecast +1.0%). The NZD/USD is also supported by the negative dollar sentiment, firmer commodity prices, the kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD upside is limited by the Kiwi sales on soft NZD/JPY cross.
Technical comment:
The daily chart is positive-biased as the MACD and stochastics are bullish, five-day moving average is above 15-day moving average and is advancing.
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 0.7530 and the second target at 0.7590. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7440. A break of this target would push the pair further downwards, and one may expect the second target at 0.74. The pivot point is at 0.7470.
Resistance levels:
0.7530
0.7590
0.7645
Support levels:
0.7440
0.74
0.7345
The material has been provided by InstaForex Company - www.instaforex.com
