Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by kiwi sales on the soft NZD/JPY cross amid increased investor risk aversion and kiwi sales on the buoyant EUR/NZD, GBP/NZD crosses. The NZD/USD losses are tempered by the negative dollar sentiment.
Technical comment:
The daily chart is mixed as the MACD is bullish, 5-day moving average is above 15-day moving average and is advancing, but stochastics is turning bearish at overbought levels.
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 0.7530. A break of that target will move the pair further downwards to 0.7455. The pivot point stands at 0.7675. 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 0.7750 and the second target at 0.78.
Resistance levels:
0.7750
0.78
0.7845
Support levels:
0.7530
0.7455
0.7405
The material has been provided by InstaForex Company - www.instaforex.com
