Fundamental overview:
NZD/USD is expected to trade in a higher range. It is supported by the soft dollar sentiment, stronger-than-expected HSBC China February flash manufacturing PMI, kiwi demand on buoyant NZD/JPY cross amid waning investor risk aversion and the New Zealand trade deficit of NZ$1.41 billion for the year ended Jan. 31 (versus forecast NZ$1.64 billion) and kiwi demand on retreating AUD/NZD cross and NZD-USD interest differential.
Technical comment:
The daily is chart positive-biased as the MACD is bullish, stochastics is reverting to bullish mode at overbought levels, five- and 15-day moving averages are advancing.
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 0.7615 and the second target at 0.7655. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7495. A break of this target would push the pair further downwards, and one may expect the second target at 0.7470. The pivot point is at 0.7530.
Resistance levels:
0.7615
0.7655
0.7690
Support levels:
0.7495
0.7470
0.7435
The material has been provided by InstaForex Company - www.instaforex.com
