Overview: NZD/USD is consolidating in lower range after hitting 10-month low of 0.7812 on Monday. The rate is supported by Kiwi demand on buoyant NZD/JPY as negative yen sentiment supports the cross. But NZD/USD gains are tempered by positive USD sentiment; fears over China economic slowdown; weaker commodity prices. Daily chart is still 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 0.7735 in view, breach of this target will move further the pair downward and you should expect the second target at 0.7685. Pivot point stands at 0.783. 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 0.789 and the second target at 0.792.
Overview:
NZD/USD is consolidating in lower range after hitting 10-month low of 0.7812 on Monday. The rate is supported by Kiwi demand on buoyant NZD/JPY as negative yen sentiment supports the cross. But NZD/USD gains are tempered by positive USD sentiment; fears over China economic slowdown; weaker commodity prices. Daily chart is still 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 0.7735 in view, breach of this target will move further the pair downward and you should expect the second target at 0.7685. Pivot point stands at 0.783. 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 0.789 and the second target at 0.792.
Support Levels:
S1 – 0.7735
S2 – 0.7685
S3 – 0.76
Resistance Levels:
R1 – 0.789
R2 – 0.792
R3 – 0.796
The material has been provided by InstaForex Company – www.instaforex.com
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