Overview: NZD/USD is consolidating with bearish bias after hitting near-six-month high 0.8543 on Tuesday. NZD/USD is supported by negative dollar sentiment; Kiwi demand on NZD/JPY cross amid positive risk appetite; firmer commodity prices; Kiwi demand on retreating AUD/NZD cross and on buoyant NZD/CAD cross. But NZD/USD gains are tempered by Kiwi sales on buoyant EUR/NZD cross and on soft NZD/CHF cross. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Tuesday; MACD is bullish; stochastics stays elevated at overbought; five- and 15-day moving averages are advancing.
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 0.834 in view; a breach of this target will move the pair further downwards to 0.8305. The pivot point stands at 0.844. 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 0.8475 and the second target at 0.852.
Support levels: 0.834 0.8305 0.8275
Resistance levels: 0.8475 0.852 0.855
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is consolidating with bearish bias after hitting near-six-month high 0.8543 on Tuesday. NZD/USD is supported by negative dollar sentiment; Kiwi demand on NZD/JPY cross amid positive risk appetite; firmer commodity prices; Kiwi demand on retreating AUD/NZD cross and on buoyant NZD/CAD cross. But NZD/USD gains are tempered by Kiwi sales on buoyant EUR/NZD cross and on soft NZD/CHF cross. Daily chart is positive-biased as bullish outside-day-range pattern was completed on Tuesday; MACD is bullish; stochastics stays elevated at overbought; five- and 15-day moving averages are advancing.
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 0.834 in view; a breach of this target will move the pair further downwards to 0.8305. The pivot point stands at 0.844. 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 0.8475 and the second target at 0.852.
Support levels:
0.834
0.8305
0.8275
Resistance levels:
0.8475
0.852
0.855
The material has been provided by InstaForex Company – www.instaforex.com
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