Overview: NZD/USD is consolidating after hitting a two-day high of 0.7917 Tuesday. The pair is supported by receding fears about New Zealand’s dairy export as whole milk powder prices fell moderate 1.6% on the GlobalDairyTrade internet-based auction for Aug. 6; Kiwi demand is on soft AUD/NZD cross. But Kiwi sentiment is dented by higher-than-expected NZ 2Q unemployment rate of 6.4% (versus 6.3% forecast). Also NZD/USD gains are tempered by Kiwi sales on the weak NZD/JPY pair amid increased risk aversion. Daily chart is mixed as MACD is bearish, but stochastics has turned bullish.
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, trading in a higher range is most favorable and buying above its pivot with the first target at 0.792 and the second target at 0.7975 is recommended. You should keep in view short positions below the pivot at the first target at 0.7785, a breach of this target will direct the pair downwards further and we expect the second target at 0.768. The pivot point is at 0.7825.
Overview:
NZD/USD is consolidating after hitting a two-day high of 0.7917 Tuesday. The pair is supported by receding fears about New Zealand’s dairy export as whole milk powder prices fell moderate 1.6% on the GlobalDairyTrade internet-based auction for Aug. 6; Kiwi demand is on soft AUD/NZD cross. But Kiwi sentiment is dented by higher-than-expected NZ 2Q unemployment rate of 6.4% (versus 6.3% forecast). Also NZD/USD gains are tempered by Kiwi sales on the weak NZD/JPY pair amid increased risk aversion. Daily chart is mixed as MACD is bearish, but stochastics has turned bullish.
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, trading in a higher range is most favorable and buying above its pivot with the first target at 0.792 and the second target at 0.7975 is recommended. You should keep in view short positions below the pivot at the first target at 0.7785, a breach of this target will direct the pair downwards further and we expect the second target at 0.768. The pivot point is at 0.7825.
Resistance levels:
R1 – 0.792
R2 – 0.7975
R3 – 0.8025
Support levels:
S1 – 0.7735
S2 – 0.768
S3 – 0.762
The material has been provided by InstaForex Company – www.instaforex.com
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