Fundamental overview:
NZD/USD is expected to consolidate with bearish bias after hitting near a four-year low of 0.7213 on Friday. It is undermined by shift in the Reserve Bank of New Zealand's monetary stance from tightening bias to neutral and by the kiwi sales on the soft NZD/JPY cross amid increased investor risk aversion. But NZD/USD losses are tempered by the weaker USD sentiment and the kiwi demand on the soft AUD/NZD cross and the NZD-USD interest differential.
Technical comment:
The daily chart is negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, 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 0.7160. 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
