Overview:
NZD/USD is expected to trade in higher range. It is supported by the broadly softer USD underton, Kiwi demand on retreating AUD/NZD cross and NZD/USD interest differential. But NZD/USD gains are tempered by the weak dairy prices and reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year. Daily chart is mixed as MACD is bearish, 5 and 15-day moving averages are falling, but stochastics is turning bullish at oversold.
Trading recommendations:
TThe pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.8435 and the second target at 0.8465. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8310. A break of this target would push the pair further downwards and one may expect the second target at 0.8270. The pivot point is at 0.8380.
Resistance levels:
0.8435
0.8465
0.8490
Support levels:
0.8310
0.827
0.8255
The material has been provided by InstaForex Company - www.instaforex.com
