Overview: NZD/USD is set to trade with bearish bias undermined by positive dollar sentiment, soft commodity prices, contagion from the weak Aussie. But NZD/USD losses tempered by the Kiwi demand on soft AUD/NZD cross, Kiwi demand on buoyant NZD/JPY cross amid weak yen sentiment, more-hawkish-than-expected Reserve bank of New Zealand’s Monetary Policy Statement as the central bank confirmed plans for cash rate hikes next year, positions adjustment before weekend. Daily chart is mixed as MACD is bullish, but stochastics is turned bearish.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 0.816 in view; a breach of this target will move the pair further downwards to 0.8115. The pivot point stands at 0.8255. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.831 and the second target at 0.8335.
Resistance levels: 0.831 0.8335 0.8365
Support levels: 0.816 0.8115 0.8075
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is set to trade with bearish bias undermined by positive dollar sentiment, soft commodity prices, contagion from the weak Aussie. But NZD/USD losses tempered by the Kiwi demand on soft AUD/NZD cross, Kiwi demand on buoyant NZD/JPY cross amid weak yen sentiment, more-hawkish-than-expected Reserve bank of New Zealand’s Monetary Policy Statement as the central bank confirmed plans for cash rate hikes next year, positions adjustment before weekend. Daily chart is mixed as MACD is bullish, but stochastics is turned bearish.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 0.816 in view; a breach of this target will move the pair further downwards to 0.8115. The pivot point stands at 0.8255. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.831 and the second target at 0.8335.
Resistance levels:
0.831
0.8335
0.8365
Support levels:
0.816
0.8115
0.8075
The material has been provided by InstaForex Company – www.instaforex.com
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