Fundamental overview:
NZD/USD is expected to consolidate with bearish bias as markets await the U.S. FOMC interest rate decision and the Reserve Bank of New Zealand interest rate decision at 20:00 GMT. The currency pair is supported by the weaker dollar sentiment. But NZD/USD upside is limited by the increased risk aversion and expectations that the RBNZ will keep its rates for longer.
Technical comment:
The daily chart is mixed as the MACD is bearish, five-day moving average is below 15-day moving average and is declining, but stochastics is turned bullish at oversold levels.
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 the pivot point. Short positions are recommended with the first target at 0.74. A break of this target will move the pair further downward to 0.7325. The pivot point stands at 0.75. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 0.7580 and the second target at 0.7625.
Resistance levels:
0.7580
0.7625
0.7635
Support levels:
0.74
0.7325
0.73
The material has been provided by InstaForex Company - www.instaforex.com
