Overview:
NZD/USD is expected to consolidate after hitting near-three-year high at 0.8794 on Friday. It is supported by the negative dollar sentiment, positive risk appetite and hawkish Reserve Bank of New Zealand’s monetary policy stance and NZD-USD interest differential. But Kiwi sentiment is dented by 4.6% drop in New Zealand May building consents issued. Daily chart is still positive-biased as MACD and stochastics is bullish, although latter is at overbought zone, five- and 15-day moving averages are advancing.
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 0.87. A breach of this target will move the pair further downwards to 0.8680. The pivot point stands at 0.8790. 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 0.8835 and the second target at 0.8860.
Resistance levels:
0.8835
0.8860
0.8880
Support levels:
0.87
0.8680
0.8655
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Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2014 |
Technical analysis of NZD/USD for June 30, 2014
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