Technical analysis of NZD/USD for January 28, 2014
January 28, 2014 3:25 pm
Overview:
NZD/USD is expected to consolidate after hitting its three-week low of 0.8194 Monday. It is undermined by lower investor risk appetite, falling commodity prices, and the kiwi sales on rebounding AUD/NZD. But NZD/USD downside move is limited by the hawkish Reserve Bank of New Zealand’s monetary policy stance and trader’s cautious moves before the Fed’s policy announcement on Wednesday. Daily chart is still negative-biased as MACD and stochastics are bearish; five day moving average is falling below the 15-day MA.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8305 and the second target at 0.834. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8215. A breach of this target will push the pair further downwards and one may expect the second target at 0.8195. The pivot point is at 0.825.
Resistance levels:
0.8305
0.834
0.838
Support levels:
0.8215
0.8195
0.8135
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is expected to consolidate after hitting its three-week low of 0.8194 Monday. It is undermined by lower investor risk appetite, falling commodity prices, and the kiwi sales on rebounding AUD/NZD. But NZD/USD downside move is limited by the hawkish Reserve Bank of New Zealand’s monetary policy stance and trader’s cautious moves before the Fed’s policy announcement on Wednesday. Daily chart is still negative-biased as MACD and stochastics are bearish; five day moving average is falling below the 15-day MA.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8305 and the second target at 0.834. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8215. A breach of this target will push the pair further downwards and one may expect the second target at 0.8195. The pivot point is at 0.825.
Resistance levels:
0.8305
0.834
0.838
Support levels:
0.8215
0.8195
0.8135
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: