Fundamental overview:
NZD/USD is expected to trade in a higher range. It is underpinned by the weaker USD sentiment, kiwi demand on buoyant NZD/JPY cross amid reduced risk aversion and the kiwi demand on soft AUD/NZD cross. But the NZD/USD gains are tempered by the shift in the Reserve Bank of New Zealand's monetary stance from tightening bias to neutral.
Technical comment:
The daily chart is still negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels and five- and 15-day moving averages declining.
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 0.7160. A break of this target will move the pair further downward to 0.71. The pivot point stands at 0.7315. 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 0.7360 and the second target at 0.7440.
Resistance levels:
0.7360
0.7440
0.7465
Support levels:
0.7160
0.71
0.7040
The material has been provided by InstaForex Company - www.instaforex.com
