Overview:
NZD/USD is expected to consolidate with bearish bias after hitting two-month low at 0.8468 on Wednesday.It is undermined by the Kiwi sales on soft NZD/JPY cross amid waning investor risk appetite, broadly stronger USD undertone, soft commodity prices, the ANZ New Zealand May business confidence survey showing confidence at a seven-month low, and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the NZD-USD interest differential. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold zone, five and 15-day moving averages are declining.
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 0.8570. A breach of this target will move the pair further downwards to 0.8495. The pivot point stands at 0.8525. In case the price moves in the opposite direction and bounces back from 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 0.8430 and the second target at 0.8400.
Resistance levels:
0.8570
0.8595
0.8620
Support levels:
0.8430
0.84
0.8370
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Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2014 |
Technical analysis of NZD/USD for May 29, 2014
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