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Overview:
NZD/USD is expected to consolidate with risks skewed higher after hitting two-and-a-month low at 0.8449 on Thursday.It is supported by the Kiwi demand on NZD/JPY cross amid reduced risk aversion, NZD-USD interest differential and Kiwi short-covering as traders book partial profits before weekend. But NZD/USD gains are tempered by the soft commodity prices; Kiwi sales on buoyant AUD/NZD cross. Daily chart is still 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 0.8455. A breach of this target will move the pair further downwards to 0.8430. 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 0.8570 and the second target at 0.8595.
Resistance levels:
0.8570
0.8595
0.8620
Support levels:
0.8455
0.8430
0.84
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Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2014 |
Technical analysis of NZD/USD for May 30, 2014
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