Fundamental overview:
NZD/USD is expected to trade with bearish bias. It is undermined by the kiwi sales on soft NZD/JPY cross amid increased investor risk aversion and kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the weaker dollar sentiment and NZD-USD interest differential.
Technical comment:
The daily chart is negative-biased as stochastics is falling from overbought levels, the MACD histogram bars is turning negative and five-day moving average is falling below 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 0.7865 and the second target at 0.79. 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 0.7755.
Resistance levels:
0.7865
0.79
0.7935
Support levels:
0.7720
0.7690
0.7650
The material has been provided by InstaForex Company - www.instaforex.com
