Fundamental overview:
NZD/USD is expected to consolidate with bullish bias after hitting three-day high 0.7809 on Tuesday. NZD sentiment is boosted by a 3.6% rise in Fonterra's GDT Price Index at latest GlobalDairyTrade auction. NZD/USD is also supported by the kiwi demand on soft AUD/NZD cross and NZD-USD interest differential. But NZD/USD gains are tempered by the broadly firmer dollar undertone and kiwi sales on soft NZD/JPY cross amid subdued investor risk appetite.
Technical comment:
Daily chart is mixed as five-day moving average is falling below 15-day moving average, but slow stochastic indicator is turning bullish.
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 0.7815 and the second target at 0.7850. In an alternative scenario, if the price moves below its pivot points, short posisitions are recommended with the first target at 0.7675. A break of this target would push the pair further downward and one may expect the second target at 0.7650. The pivot point is at 0.77.
Resistance levels:
0.7820
0.7850
0.7875
Support levels:
0.7675
0.7650
0.7615
The material has been provided by InstaForex Company - www.instaforex.com
