Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the broadly firmer dollar undertone, the kiwi sales on the soft NZD/JPY cross amid subdued investor risk appetite and weak commodity prices. But the NZD/USD downside is limited by the kiwi demand on the soft AUD/NZD cross and NZD-USD interest differential (10-year gap last at 131 basis points).
Technical comment:
The daily chart is mixed as the MACD is bullish, but stochastics is bearish at overbought levels.
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 0.7415. A break of this target will move the pair further downward to 0.7390. The pivot point stands at 0.7485. 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 0.7505 and the second target at 0.7535.
Resistance levels:
0.7505
0.7535
0.7575
Support levels:
0.7415
0.7390
0.7345
The material has been provided by InstaForex Company - www.instaforex.com
