Fundamental overview:
NZD/USD is expected to consolidate with bearish bias after hitting almost a one-month low of 0.7340 this morning. NZD/USD is undermined by the bullish dollar sentiment and kiwi sales on the soft NZD/JPY cross amid increased investor risk aversion, weak commodity prices, kiwi sales on the buoyant AUD/NZD and GBP/NZD crosses and on the soft NZD/CAD cross. The kiwi sentiment is soothed by the rise of 0.9% in New Zealand 4Q manufacturing sales volumes.
Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish. Five-day moving average is below 15-day moving average and is declining.
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 0.7320. A break of that target will move the pair further downwards to 0.7240. The pivot point stands at 0.7410. 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 0.7450 and the second target at 0.7410.
Resistance levels:
0.7450
0.75
0.7550
Support levels:
0.7320
0.7240
0.72
The material has been provided by InstaForex Company - www.instaforex.com
