Overview: NZD/USD is consolidating with bullish bias after hitting one-week low of 0.8215 Wednesday. Kiwi sentiment is hurt after New Zealand posted NZD1.19 billion goods trade deficit for August and NZD2.06 billion deficit for the year ended Aug. 31; both deficits were the widest since September 2008. NZD/USD is also weighed by Kiwi sales in NZD/JPY cross amid receding investor risk appetite, Kiwi sales in the buoyant AUD/NZD cross. But NZD/USD losses are tempered by weaker dollar sentiment, optimism over China’s economic recovery. Daily chart is negative-biased as stochastics is bearish and overbought, thepositive MACD histogram bars are contracting.
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 far as the price is above its pivot point, a long position is recommended with the first target at 159.45 and the second target at 160. In alternative scenario, if the price moves below its pivot points a short position is recommended with the first target at 157.25. The breach of this target will move the pair further downwards and one may expect the second target at 156.6. The pivot point stands at 157.9.
Resistance levels: 0.8295 0.8345 0.841
Support levels: 0.8155 0.8095 0.80
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is consolidating with bullish bias after hitting one-week low of 0.8215 Wednesday. Kiwi sentiment is hurt after New Zealand posted NZD1.19 billion goods trade deficit for August and NZD2.06 billion deficit for the year ended Aug. 31; both deficits were the widest since September 2008. NZD/USD is also weighed by Kiwi sales in NZD/JPY cross amid receding investor risk appetite, Kiwi sales in the buoyant AUD/NZD cross. But NZD/USD losses are tempered by weaker dollar sentiment, optimism over China’s economic recovery. Daily chart is negative-biased as stochastics is bearish and overbought, thepositive MACD histogram bars are contracting.
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 far as the price is above its pivot point, a long position is recommended with the first target at 159.45 and the second target at 160. In alternative scenario, if the price moves below its pivot points a short position is recommended with the first target at 157.25. The breach of this target will move the pair further downwards and one may expect the second target at 156.6. The pivot point stands at 157.9.
Resistance levels:
0.8295
0.8345
0.841
Support levels:
0.8155
0.8095
0.80
The material has been provided by InstaForex Company – www.instaforex.com
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