Overview:
NZD/USD is trading in higher range. The rate is supported by Kiwi demand on soft AUD/NZD cross; NZD-USD interest differential (differential between New Zealand and U.S. 10-year government bond yields at 208 bps). But NZD/USD gains are tempered by Kiwi sales on NZD/JPY cross amid waning investor risk appetite; official jawboning on Kiwi strength. Daily chart is still negative-biased as MACD and stochastics are bearish; five-day moving average is below 15-day MA and falling.
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 0.812 in view; a breach of this target will move the pair further downwards to 0.809 The pivot point stands at 0.824. 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 0.8275 and the second target at 0.83.
Support levels:
0.812
0.809
0.8025
Resistance levels:
0.8275
0.83
0.8380
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Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2013 |
NZDUSD: Bearish outlook (November 26, 2013)
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