Fundamental overview:
NZD/USD is expected to trade with risks skewed lower. It is undermined by bullish dollar sentiment, and kiwi sales on the soft NZD/JPY cross amid subdued investor risk appetite and weak commodity prices. The NZD/USD losses are tempered by kiwi demand on the soft AUD/NZD and EUR/NZD crosses and the NZD-USD yield differential.
Technical comment:
The daily chart is mixed as the MACD is bearish, five-day moving average is below 15-day moving average and is declining, but stochastics is rising from oversold levels. Inside-day-range pattern was completed on Friday.
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 0.74 and the second target at 0.7445. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7255. A break of this target would push the pair further downwards, and one may expect the second target at 0.7215. The pivot point is at 0.7310.
Resistance levels:
0.74
0.7445
0.75
Support levels:
0.7255
0.7215
0.7180
The material has been provided by InstaForex Company - www.instaforex.com
