Overview: NZD/USD is consolidating with bearish bias after hitting one-year low of 0.7698 Friday. The rate is undermined by positive dollar sentiment; weak commodity prices; fears over China economic slowdown. Data focus: 03:00 GMT New Zealand May credit card statistics. Daily chart is 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. 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 0.768 in view, breach of this target will move further the pair downward and you should expect the second target at 0.765. Pivot point stands at 0.78. 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 0.7855 and the second target at 0.79.
Support levels: S1 – 0.768 S2 – 0.765 S3 – 0.762
Resistance levels: R1 – 0.7855 R2 – 0.79
R3 – 0.7875
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is consolidating with bearish bias after hitting one-year low of 0.7698 Friday. The rate is undermined by positive dollar sentiment; weak commodity prices; fears over China economic slowdown. Data focus: 03:00 GMT New Zealand May credit card statistics. Daily chart is 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. 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 0.768 in view, breach of this target will move further the pair downward and you should expect the second target at 0.765. Pivot point stands at 0.78. 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 0.7855 and the second target at 0.79.
Support levels:
S1 – 0.768
S2 – 0.765
S3 – 0.762
Resistance levels:
R1 – 0.7855
R2 – 0.79
R3 – 0.7875
The material has been provided by InstaForex Company – www.instaforex.com
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