Technical analysis of NZD/USD for January 29, 2014
January 29, 2014 5:05 am
Overview:
NZD/USD is expected to consolidate with bullish bias as markets await 1900 GMT U.S. FOMC interest rate decision and 2000 GMT (9 am Thursday NZ Time) RBNZ official cash rate announcement. Money markets see a 38% chance that the RBNZ will raise rates from 2.5% where it has stayed for nearly three years. NZD/USD is supported by Kiwi demand on the NZD/JPY cross amid reduced risk aversion. But NZD/USD gains are tempered by Kiwi sales on buoyant AUD/NZD cross. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and declining, but stochastics is turning bullish in oversold zone.
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 with bullish bias as markets await 1900 GMT U.S. FOMC interest rate decision and 2000 GMT (9 am Thursday NZ Time) RBNZ official cash rate announcement. Money markets see a 38% chance that the RBNZ will raise rates from 2.5% where it has stayed for nearly three years. NZD/USD is supported by Kiwi demand on the NZD/JPY cross amid reduced risk aversion. But NZD/USD gains are tempered by Kiwi sales on buoyant AUD/NZD cross. Daily chart is mixed as MACD is bearish, five-day moving average is below 15-day MA and declining, but stochastics is turning bullish in oversold zone.
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
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