Fundamental overview:
NZD/USD is expected to consolidate with bearish bias after hitting an eight-day low of 0.7420 on Monday. It is undermined by the broadly firmer dollar undertone, weak China March trade data, kiwi sales on soft NZD/JPY cross amid subdued investor risk appetite, weak dairy prices, and NZIER quarterly survey of business opinion showing business confidence in New Zealand came off slightly in the first quarter with net 20% of firms expecting business conditions to improve over the next six months and down from 22% in the fourth quarter. But NZD/USD losses are tempered by the NZD-USD interest differential and 9.5% rise in Reinz New Zealand House Price Index on a yeat basis in March.
Technical comment:
The daily chart is negative-biased as the MACD and stochastics turned bearish.
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 0.7485. 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 0.7525 and the second target at 0.7560.
Resistance levels:
0.7525
0.7560
0.7605
Support levels:
0.7420
0.7390
0.7355
The material has been provided by InstaForex Company - www.instaforex.com
