Fundamental overview:
NZD/USD is expected to consolidate. It is undermined by the improved dollar sentiment, the kiwi sales on soft NZD/JPY cross amid subdued investor risk appetite, and soft commodity prices. But NZD/USD losses are tempered by the kiwi demand on a soft AUD/NZD cross, NZD-USD yield differential, and positions adjustment ahead of weekend.
Technical comment:
The daily chart is positive-biased as the MACD and stochastic is in bullish mode, and a five-day moving average is advancing. Although, the inside-day-range pattern was completed on Thursday.
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 0.7340. The break of that target will move the pair further downwards to 0.7270. The pivot point stands at 0.7510. 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 0.7565 and the second target at 0.7620.
Resistance levels:
0.7565
0.7620
0.7715
Support levels:
0.7340
0.7270
0.7235
The material has been provided by InstaForex Company - www.instaforex.com
