Fundamental overview:
NZD/USD is expecetd to trade in a higher range. It is underpinned by the weaker dollar sentiment (ICE spot dollar index last 91.78 versus 92.31 early Friday) as weaker-than-expected 0.17% on-year rise in U.S. December average hourly earnings (versus forecast +0.2%) pushed back expectations for a Federal Reserve rate rise this year, overshadowing stronger-than-expected 252,000 increase in U.S. non-farm payrolls (versus +240,000 forecast) and lower-than-expected U.S. unemployment rate of 5.6% (versus forecast 5.7%) and widening NZD-USD interest differential. But NZD/USD gains are tempered by the Kiwi sales on soft NZD/JPY cross amid subdued investor risk appetite and Kiwi sales on buoyant AUD/NZD cross.
Technical comment:
Daily chart is positive-biased as MACD and stochastics are bullish, five-day moving average are rising above 15-day moving average.
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 0.79 and the second target at 0.7920. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7755. A break of this target would push the pair further downward and one may expect the second target at 0.7720. The pivot point is at 0.7785.
Resistance levels:
0.79
0.7920
0.7945
Support levels:
0.7755
0.7720
0.7680
The material has been provided by InstaForex Company - www.instaforex.com
