Fundamental overview:
NZD/USD is expected to consolidate after hitting a 3-week high of 0.7528 on Monday. On Tuesday at 12:00 GMT the report on NZ Global Dairy Trade is expected. NZD/USD is supported by the stronger than expected New Zealand 4Q retail sales and kiwi demand on soft AUD/NZD and EUR/NZD crosses. But NZD/USD upside is limited by the the kiwi sales on soft NZD/JPY cross amid increased investor risk aversion.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are bullish, although the latter is at overbought levels. 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 0.7590 and the second target at 0.7625. 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:
0.7590
0.7625
0.7685
Support levels:
0.7440
0.74
0.7345
The material has been provided by InstaForex Company - www.instaforex.com
