Overview: NZD/USD is consolidating after hitting three-day low of 0.7946 Tuesday as markets await U.S. FOMC interest rate decision. NZD/USD is undermined by contagion from weak Aussie; fears over China’s economic slowdown. But NZD/USD downside is limited by positive investor risk appetite. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.
Trading recommendation: 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 0.795 in view, breach of this target will move further the pair downward and you should expect the second target at 0.789. Pivot point stands at 0.804. 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 0.82 and the second target at 0.8155.
Overview:
NZD/USD is consolidating after hitting three-day low of 0.7946 Tuesday as markets await U.S. FOMC interest rate decision. NZD/USD is undermined by contagion from weak Aussie; fears over China’s economic slowdown. But NZD/USD downside is limited by positive investor risk appetite. Daily chart is mixed as MACD is bullish, but stochastics is in bearish mode.
Trading recommendation:
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 0.795 in view, breach of this target will move further the pair downward and you should expect the second target at 0.789. Pivot point stands at 0.804. 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 0.82 and the second target at 0.8155.
Support levels:
S1 – 0.795
S2 – 0.789
S3 – 0.785
Resistance levels:
R1 – 0.82
R2 – 0.8155
R3 – 0.812
The material has been provided by InstaForex Company – www.instaforex.com
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