Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a seven-day low at 0.7449 on Thursday as markets are awaiting U.S. nonfarm payrolls report. NZD/USD is undermined by the kiwi sales on cross trades versus major currencies and broadly firmer dollar undertone and weaker commodity prices. But NZD/USD losses are tempered by the improved investor risk appetite and positions adjustment ahead of the weekend.
Technical comment:
The daily chart is tilting negative as stochastics is falling from the overbought levels, positive MACD histogram bars are contracting, five-day moving average is falling below 15-day moving average.
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 0.7430. A break of that target will move the pair further downwards to 0.7405. The pivot point stands at 0.7530. 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 0.7575 and the second target at 0.7615.
Resistance levels:
0.7575
0.7615
0.7645
Support levels:
0.7430
0.7405
0.7365
The material has been provided by InstaForex Company - www.instaforex.com
