Overview:
NZD/USD is expected to consolidate in lower range after hitting its six-week high 0.8425 on Friday. It is undermined by the kiwi sales on soft NZD/JPY cross amid increased investor risk aversion on events in Ukraine and concerns over economic slowdown in China. But NZD/USD losses are tempered by the negative dollar sentiment and stronger-than-expected 2.3% rise in New Zealand's terms-of-trade index in the fourth quarter to 40-year high (versus +1.8% forecast), kiwi demand on soft AUD/NZD cross and hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart is still positive-biased as MACD and stochastics is in bullish mode, 5- 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 0.8330. A breach of this target will move the pair further downwards to 0.8310. The pivot point stands at 0.838. In case the price moves in the opposite direction, bounces back from support level, and then 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 0.8425 and the second target at 0.846.
Resistance levels:
0.8425
0.846
0.849
Support levels:
0.8330
0.8310
0.8285
The material has been provided by InstaForex Company - www.instaforex.com
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