Fundamental overview:
NZD/USD is expected to consolidate with bearish bias after hitting a seven-day low of 0.7454 on Tuesday. It is undermined by the broadly firmer dollar undertone and weak commodity prices (CRB spot index closed 1.12% down at 211.85 on Tuesday) and the kiwi sales on soft NZD/JPY amid subdued investor risk appetite. But NZD/USD losses are tempered by the kiwi demand on soft AUD/NZD cross.
Technical comment:
The daily chart is tilting negative as stochastics is falling from overbought levels, positive MACD histogram bars are contracting.
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 0.7370. A break of that target will move the pair further downwards to 0.7310. The pivot point stands at 0.7500. 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 0.7545 and the second target at 0.76.
Resistance levels:
0.7545
0.76
0.7645
Support levels:
0.7370
0.7310
0.7245
The material has been provided by InstaForex Company - www.instaforex.com
