Fundamental overview:
NZD/USD is expected to trade in a higher range. Kiwi sentiment is boosted by the quarterly drop by 1.9% in New Zealand's 4Q terms of trade (versus forecast -3.1%). NZD/USD ia also supported by China's rate cut on Saturday, Kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion and the NZD-USD interest differential. But the NZD/USD gains are tempered by the positive dollar sentiment.
Technical comment:
The daily chart is positive-biased as the MACD is bullish, stochastics stays elevated at overbought levels, five and 15-day moving averages are 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 0.7570 and the second target at 0.7615. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7470. A break of this target would push the pair further downwards, and one may expect the second target at 0.7430. The pivot point is at 0.7515.
Resistance levels:
0.7570
0.7615
0.7655
Support levels:
0.7470
0.7430
0.74
The material has been provided by InstaForex Company - www.instaforex.com
