Fundamental overview:
NZD/USD is expected to consolidate with bullish bias after hitting a four-day high of 0.7442 on Thursday. Kiwi sentiment is boosted by the 5.2-point rise in seasonally adjusted BusinessNZ manufacturing index to 55.9 in February from the previous month. NZD/USD is also supported by the NZD-USD yield differential, weaker dollar sentiment, kiwi demand on the buoyant NZD/JPY cross amid reduced risk aversion, and kiwi demand on the soft EUR/NZD, GBP/NZD crosses and on the buoyant NZD/CAD and NZD/CHF crosses. The NZD/USD gains are tempered by kiwi sales on the buoyant AUD/NZD cross and positions adjustment ahead of the weekend.
Technical comment:
The daily chart is mixed as the MACD is bearish, but stochastics is bullish at oversold levels.
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 0.7380 and the second target at 0.7445. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7215. A break of this target would push the pair further downwards, and one may expect the second target at 0.7180. The pivot point is at 0.7275.
Resistance levels:
0.7380
0.7445
0.75
Support levels:
0.7215
0.7180
0.7150
The material has been provided by InstaForex Company - www.instaforex.com
