NZD/USD is expected to consolidate with a bearish bias after hitting a six-week low at 0.8537 on Friday. It is undermined by the continued impact from Reserve Bank of New Zealand Gov. Wheeler’s comment last week that the Kiwi’s strength is “unjustified and unsustainable”. Besides, we should consider a pause in the RBNZ’s rate-tightening cycle, the positive dollar sentiment, and Kiwi sales on soft NZD/JPY cross amid the increasing investors’ risk aversion. But NZD/USD losses are tempered by the NZD/USD interest differential. The daily chart is negative-biased as MACD is bearish, the stochastics stays suppressed in the oversold zone; five-day moving average is below 15-day MA and is declining.
Trading recommendations:
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. Short position is recommended with the first target at 0.8530. A break of this target will move the pair further downwards to 0.8490. The pivot point stands at 0.8635. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8665 and the second target at 0.8710.
Resistance levels:
0.8620
0.8650
0.8675
Support levels:
0.85
0.8470
0.8450
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a six-week low at 0.8537 on Friday. It is undermined by the continued impact from Reserve Bank of New Zealand Gov. Wheeler’s comment last week that the Kiwi’s strength is “unjustified and unsustainable”. Besides, we should consider a pause in the RBNZ’s rate-tightening cycle, the positive dollar sentiment, and Kiwi sales on soft NZD/JPY cross amid the increasing investors’ risk aversion. But NZD/USD losses are tempered by the NZD/USD interest differential. The daily chart is negative-biased as MACD is bearish, the stochastics stays suppressed in the oversold zone; five-day moving average is below 15-day MA and is declining.
Trading recommendations:
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. Short position is recommended with the first target at 0.8530. A break of this target will move the pair further downwards to 0.8490. The pivot point stands at 0.8635. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8665 and the second target at 0.8710.
Resistance levels:
0.8620
0.8650
0.8675
Support levels:
0.85
0.8470
0.8450
The material has been provided by InstaForex Company – www.instaforex.com
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