Fundamental overview:
NZD/USD is expected to consolidate with a bullish bias. It is underpinned by the weaker USD sentiment (ICE spot dollar index last 85.01 versus 85.31 early Monday) as U.S. Treasury yields inched lower (10-year at 2.192% versus 2.199% late Friday), Kiwi demand on buoyant NZD/JPY cross amid the positive risk sentiment and NZD-USD interest differential and firmer dairy prices. Daily chart is positive-biased as MACD and stochastics are bullish, five-day moving average was above 15-day MA and is advancing.
Technical comment:
Daily chart is positive-biased as MACD and stochastics are bullish, five-day moving average was above 15-day MA and is advancing.
Trading recommendations:
The 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 0.8050 and the second target at 0.8095. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7880. A break of this target would push the pair further downwards and one may expect the second target at 0.7840. The pivot point is at 0.7945.
Resistance levels:
0.8050
0.8075
0.8095
Support levels:
0.7880
0.7840
0.78
The material has been provided by InstaForex Company - www.instaforex.com
