Overview: NZD/USD is in range-trade. The rate is supported by weaker dollar sentiment; buoyant commodity prices; reduced worries over China slowdown; Kiwi demand on retreating AUD/NZD cross. But NZD/USD upside is limited by Kiwi sales on NZD/JPY cross amid negative risk sentiment; lingering worries over regional emerging markets. Daily chart is still negative-biased as MACD and stochastics are bearish; five-day moving average is below 15-day MA and declining.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short positions are recommended with the first target at 0.776 in view; a breach of this target will move the pair downwards further and you should expect the second target at 0.7715. The pivot point stands at 0.7825. In case the price moves in the opposite direction, returns from its support, and moves above its pivot point, then trading in a higher range is the most favorable and positions buying is recommended above its pivot with the first target at 0.7875 and the second target at 0.7905.
Overview:
NZD/USD is in range-trade. The rate is supported by weaker dollar sentiment; buoyant commodity prices; reduced worries over China slowdown; Kiwi demand on retreating AUD/NZD cross. But NZD/USD upside is limited by Kiwi sales on NZD/JPY cross amid negative risk sentiment; lingering worries over regional emerging markets. Daily chart is still negative-biased as MACD and stochastics are bearish; five-day moving average is below 15-day MA and declining.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short positions are recommended with the first target at 0.776 in view; a breach of this target will move the pair downwards further and you should expect the second target at 0.7715. The pivot point stands at 0.7825. In case the price moves in the opposite direction, returns from its support, and moves above its pivot point, then trading in a higher range is the most favorable and positions buying is recommended above its pivot with the first target at 0.7875 and the second target at 0.7905.
Support Levels:
S1 – 0.776
S2 – 0.7715
S3 – 0.77
Resistance Levels:
R1 – 0.7875
R2 – 0.7905
R3 – 0.7975
The material has been provided by InstaForex Company – www.instaforex.com
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