Fundamental overview:
NZD/USD is going to range trade. It is supported by the improved investor risk tolerance and the NZD-USD interest differential. But the upside of NZD/USD is limited by the positive dollar sentiment (ICE spot dollar index last 98.06 versus 97.91 early Wednesday) after hawkish minutes of the March FOMC meeting that showed "several" participants thought a June interest rate hike could be possible, while "a couple" preferred to wait until 2016. Although the minutes were deemed out of date given the last week's extremely weak U.S. March non-farm payrolls data and weak dairy prices.
Technical comment:
The daily chart is mixed as stochastics is bearish, but the MACD is in bullish mode.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.7620 and the second target at 0.7665. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7510. A break of this target would push the pair further downwards, and one may expect the second target at 0.7485. The pivot point is at 0.7545.
Resistance levels:
0.7620
0.7665
0.7695
Support levels:
0.7510
0.7485
0.7435
The material has been provided by InstaForex Company - www.instaforex.com
