Overview: NZD/USD is consolidating with bearish bias after hitting 10-month low of 0.7812 this morning. The rate is undermined by positive USD sentiment; heightened fears over China’s economic slowdown; Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by better investor risk appetite. Data focus: 00:00 GMT New Zealand May QV nationwide residential property values. Daily chart is negative-biased as MACD is bearish, stochastics is staying suppressed at oversold; five- and 15-day moving averages are declining.
Trading recommendations: The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.778 in view, breach of this target will move further the pair downward and you should expect the second target at 0.775. Pivot point stands at 0.79. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.7925 and the second target at 0.7999.
Overview:
NZD/USD is consolidating with bearish bias after hitting 10-month low of 0.7812 this morning. The rate is undermined by positive USD sentiment; heightened fears over China’s economic slowdown; Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by better investor risk appetite. Data focus: 00:00 GMT New Zealand May QV nationwide residential property values. Daily chart is negative-biased as MACD is bearish, stochastics is staying suppressed at oversold; five- and 15-day moving averages are declining.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.778 in view, breach of this target will move further the pair downward and you should expect the second target at 0.775. Pivot point stands at 0.79. In case the price moves in opposite direction and returns from its support and moves above its pivot point, then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.7925 and the second target at 0.7999.
Support Levels:
S1 – 0.778
S2 – 0.775
S3 – 0.7725
Resistance Levels:
R1 – 0.7925
R2 – 0.7975
R3 – 0.7999
The material has been provided by InstaForex Company – www.instaforex.com
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