NZD/USD is expected to trade with the bearish bias. It is undermined by the positive dollar sentiment, reduced risk appetite, and continued impact from RBNZ Gov. Wheeler’s comment that a high Kiwi exchange rate in face of weakening fundamentals may prompt RBNZ to intervene to sell NZD and Kiwi on buoyant AUD/NZD cross rate. But NZD/USD losses are tempered by the NZD/USD interest differential, diminished concerns over China’s economy after stronger-than-expected China April trade data and positions adjustment before the weekend. The Daily chart is mixed as MACD is bullish, but stochastics is in the bearish mode.
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. Short position is recommended with the first target at 0.8630. A breach of this target will move the pair further downwards to 0.8595. The pivot point stands at 0.8670. In case the price moves in the opposite direction and bounces back from the support level, and then it 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 0.8630 and the second target at 0.8595.
Resistance levels:
0.8710
0.8745
0.8780
Support levels:
0.8630
0.8595
0.8550
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
NZD/USD is expected to trade with the bearish bias. It is undermined by the positive dollar sentiment, reduced risk appetite, and continued impact from RBNZ Gov. Wheeler’s comment that a high Kiwi exchange rate in face of weakening fundamentals may prompt RBNZ to intervene to sell NZD and Kiwi on buoyant AUD/NZD cross rate. But NZD/USD losses are tempered by the NZD/USD interest differential, diminished concerns over China’s economy after stronger-than-expected China April trade data and positions adjustment before the weekend. The Daily chart is mixed as MACD is bullish, but stochastics is in the bearish mode.
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. Short position is recommended with the first target at 0.8630. A breach of this target will move the pair further downwards to 0.8595. The pivot point stands at 0.8670. In case the price moves in the opposite direction and bounces back from the support level, and then it 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 0.8630 and the second target at 0.8595.
Resistance levels:
0.8710
0.8745
0.8780
Support levels:
0.8630
0.8595
0.8550
The material has been provided by InstaForex Company – www.instaforex.com
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