Fundamental overview:
NZD/USD is expected to trade in lower range.It is undermined by the improved dollar sentiment, Kiwi sales on the soft NZD/JPY cross amid increased investor risk aversion, weak dairy prices and threat of central bank intervention to weaken the NZD. But NZD/USD losses are tempered by the Kiwi demand on soft AUD/NZD cross and positions adjustment before U.S. long weekend.
Technical comment:
Daily chart is mixed as MACD and stochastics are in bullish mode but bearish dark-cloud-cover candlestick pattern was completed on Thursday.
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 0.7785. A break of this target will move the pair further downwards to 0.7745. The pivot point stands at 0.7885. 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 0.7920 and the second target at 0.7960.
Resistance levels:
0.7920
0.7960
0.8005
Support levels:
0.7785
0.7765
0.7745
The material has been provided by InstaForex Company - www.instaforex.com
