Fundamental overview:
NZD/USD is expected to consolidate with bullish bias. NZD/USD is undermined by bearish dollar sentiment after lower-then-expected Non farm payroll data. The kiwi sales on soft NZD/JPY cross amid increased investor risk aversion, weak commodity prices, and the kiwi sales on buoyant AUD/NZD, GBP/NZD crosses and on soft NZD/CAD cross. But kiwi sentiment is soothed by 0.9% rise in the Q4 manufacturing sales volumes in New Zealand.
Technical comment:
The daily chart is negative-biased as the MACD and stochastics are bearish, a five-day moving average is below a 15-day moving average, and is declining.
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 0.7630 and the second target at 0.7660. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7515. A break of this target would push the pair further downwards, and one may expect the second target at 0.7470. The pivot point is at 0.7555.
Resistance levels:
0.7630
0.7660
0.7695
Support levels:
0.7515
0.7470
0.7415
The material has been provided by InstaForex Company - www.instaforex.com
