Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the positive dollar sentiment (ICE spot dollar index last 99.28 versus 98.97 early Friday) amid investors' confidence over the US economy recovery and expectations for an interest-rate hike in the second half of 2015 (Fed's Lacker reiterated Friday that he sees a strong probability for the US central bank to begin raising short-term rates this summer), lower dairy prices, and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the positive investor risk sentiment and NZD-USD interest differential.
Technical comment:
The daily chart is mixed as the MACD is in bullish mode, but stochastic is neutral.
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 0.7420. A break of that target will move the pair further downwards to 0.7390. The pivot point stands at 0.7525. 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, long positions are recommended with the first target at 0.7560 and the second target at 0.7605.
Resistance levels:
0.7560
0.7605
0.7645
Support levels:
0.7420
0.7390
0.7355
The material has been provided by InstaForex Company - www.instaforex.com
