Fundamental overview:
NZD/USD is expected to trade in a lower range. It is supported by positive investor risk sentiment and NZD-USD interest differential. But NZD/USD upside is limited by bullish dollar sentiment (ICE spot dollar index last 98.99 versus 98.06 early Thursday) as a four-week moving average for US jobless claims fell by 3,000 to 282,250 in week ended April 4 (the lowest level since June 2000); stronger-than-expected 0.3% on-month increase in US February wholesale inventories (versus forecast +0.2%), weak dairy prices, and positions adjustment ahead of the weekend.
Technical comment:
The daily chart is mixed as the MACD is in bullish mode, but stochastics is neutral.
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 0.7510. A break of that target will move the pair further downwards to 0.7485. The pivot point stands at 0.7605. 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, long positions are recommended with the first target at 0.7625179.05 and the second target at 0.7665.
Resistance levels:
0.7625
0.7665
0.7695
Support levels:
0.7510
0.7485
0.7435
The material has been provided by InstaForex Company - www.instaforex.com
