Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a three-week low 0.7766 on Wednesday. It is undermined by the less-hawkish-than-expected Reserve Bank of New Zealand's policy statement as the central bank kept interest rates on hold at 3.5%. The RBNZ has shifted, removing the mild tightening bias and implicitly making the next policy move open-ended, Citigroup says. NZD/USD is also weighed by the positive USD sentiment and Kiwi sales on soft NZD/JPY cross amid the subdued investor risk appetite. But NZD/USD losses are tempered by the NZD-USD interest differential.
Technical comment:
Daily is chart mixed as MACD is bullish, but stochastics is reverted to bearish mode, bearish outside-day-range pattern was completed on Wednesday.
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 0.7805. A break of this target will move the pair further downwards to 0.7760. The pivot point stands at 0.7880. 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 0.7810 and the second target at 0.7855.
Resistance levels:
0.7910
0.7955
0.7990
Support levels:
0.7805
0.7760
0.7735
The material has been provided by InstaForex Company - www.instaforex.com
