Fundamental overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a two-and-a-half year low at 0.7476 on Thursday. It is undermined by the expectations that the Reserve Bank of New Zealand will leave rates on hold longer after soft New Zealand 4Q CPI and surprise interest rate cut by the Bank of Canada. NZD/USD is also weighed by the positive dollar sentiment and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the positive global risk sentiment and positions adjustment ahead of the weekend. Daily chart is negative-biased as MACD and slow stochastic indicators are bearish, five and 15-day moving averages are declining.
Technical comment:
Daily chart is negative-biased as MACD and slow stochastic indicators are bearish; five and 15-day moving averages are 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 0.7445. A break of this target will move the pair further downward to 0.74. The pivot point stands at 0.7625. 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 0.7710 and the second target at 0.7785.
Resistance levels:
0.7710
0.7785
0.7810
Support levels:
0.7445
0.74
0.7375
The material has been provided by InstaForex Company - www.instaforex.com
