Overview:
NZD/USD is expected to trade in a lower range. the NZD sentiment is dented by the 0.6% drop in Fonterra's GDT Price Index at the latest Global Dairy Trade auction, 1.0% on-quarter drop in New Zealand 2Q producer input prices, and a 0.5% drop in producer output prices. NZD/USD is also undermined by the positive dollar sentiment, soft commodity prices, reduced expectations of further rate hikes from the Reserve Bank of New Zealand this year as well as the official stance against strong Kiwi exchange rate and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the positive risk sentiment and NZD-USD interest differential. The daily chart is mixed as MACD is bullish, but stochastics is 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 its pivot point. Short position is recommended with the first target at 0.8335. A break of this target will move the pair further downwards to 0.83. The pivot point stands at 0.8435. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8465 and the second target at 0.8490.
Resistance levels:
0.8465
0.8490
0.8530
Support levels:
0.8335
0.83
0.8275
The material has been provided by InstaForex Company - www.instaforex.com
