Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a two-week low 0.7764 on Tuesday. It is undermined by lower inflation expectations in the Reserve Bank of New Zealand's fourth-quarter survey, contagion from weak Aussie and soft commodity prices (CRB spot index closed down 0.13% Tuesday at 266.85). But NZD/USD losses are tempered by NZD-USD interest differential, weaker USD sentiment and Kiwi demand on soft AUD/NZD cross. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.
Technical Comment:
Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.
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 its pivot point. Short position is recommended with the first target at 0.7765. A break of this target will move the pair further downwards to 0.7735. The pivot point stands at 0.7855. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.7885 and the second target at 0.7910.
Resistance levels:
0.7885
0.7910
0.7945
Support levels:
0.7765
0.7735
0.77
The material has been provided by InstaForex Company - www.instaforex.com
