Fundamental overview:
NZD/USD is expected to trade with bearish bias. It is supported by negative dollar sentiment and kiwi demand on buoyant NZD/JPY cross amid positive risk sentiment, NZD-USD yield differential, and stronger-than-expected 3.5% on-year growth of New Zealand. 4Q GDP hit its highest since the September 2007 quarter versus the forecast of +3.4%. But NZD/USD gains are tempered by lower dairy prices.
Technical comment:
The daily chart is tilting positive as bullish outside-day-range pattern was completed on Wednesday, the MACD and stochastics turned bullish, bullish parabolic stop-and-reverse signal hit on Wednesday.
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 0.7550. 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 0.7620 and the second target at 0.7715.
Resistance levels:
0.7620
0.7715
0.7745
Support levels:
0.7340
0.7270
0.7235
The material has been provided by InstaForex Company - www.instaforex.com
