Fundamental overview:
NZD/USD is expected to range-trade. It is supported by the subdued investor risk aversion and NZD-USD interest differential and firmer dairy prices. But NZD/USD upside limited by improved USD sentiment after unexpected 23,000 drop in U.S. jobless claims to 14-year low of 264,000 in week ended Oct. 11 (versus forecast 290,000), stronger-than-expected 1.0% increase in U.S. September industrial production (versus forecast +0.4%) for largest monthly increase in three years, while capacity utilization rose more-than-expected to 79.3% in September--highest level since June 2008 (versus forecast 79.0%), less-than-expected drop in Philadelphia Fed's index of general business activity to 20.7 in October from 22.5 in September (versus forecast 19.9) and positions adjustment before weekend.
Technical comment:
Daily chart is still positive-biased as MACD and stochastics are bullish and five-day moving average is above 15-day MA and 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 0.8 and the second target at 0.8050. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7840. A break of this target would push the pair further downwards and one may expect the second target at 0.8. The pivot point is at 0.7885.
Resistance levels:
0.8000
0.8050
0.8075
Support levels:
0.7840
0.78
0.7760
The material has been provided by InstaForex Company - www.instaforex.com
