Overview: NZD/USD is trading in a lower range. It is undermined by contagion from the weaker Aussie; concerns about banking system liquidity in China; positions adjustment before the U.S. FOMC monetary policy decision Wednesday. But NZD/USD downside is limited by the Kiwi demand in the retreating AUD/NZD cross; Federal Reserve’s ultra-loose monetary policy. Daily chart is negative-biased as MACD and stochastics are bearish; the 5-day moving average is below the 15-day MA and falling.
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 0.823 in view; a breach of this target will move the pair further downwards to 0.82. The pivot point stands at 0.833. 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 0.84 and the second target at 0.844.
Support levels: 0.823 0.82 0.8175
Resistance levels: 0.84 0.844 0.849
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is trading in a lower range. It is undermined by contagion from the weaker Aussie; concerns about banking system liquidity in China; positions adjustment before the U.S. FOMC monetary policy decision Wednesday. But NZD/USD downside is limited by the Kiwi demand in the retreating AUD/NZD cross; Federal Reserve’s ultra-loose monetary policy. Daily chart is negative-biased as MACD and stochastics are bearish; the 5-day moving average is below the 15-day MA and falling.
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 0.823 in view; a breach of this target will move the pair further downwards to 0.82. The pivot point stands at 0.833. 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 0.84 and the second target at 0.844.
Support levels:
0.823
0.82
0.8175
Resistance levels:
0.84
0.844
0.849
The material has been provided by InstaForex Company – www.instaforex.com
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