Overview:
NZD/USD is expected to trade in lower range after hitting its two-and-a-half year high at 0.8701 on Tuesday. It is undermined by the kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the kiwi demand on NZD/JPY cross amid positive risk appetite and weak yen sentiment, hawkish the Reserve Bank of New Zealand's monetary policy stance and softer dollar sentiment. Daily chart is mixed as MACD is bullish, 5- and 15- day moving averages are advancing, but stochastics is turned bearish at overbought zone.
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 0.8535. A breach of this target will move the pair further downwards to 0.8510. The pivot point stands at 0.8610. 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 0.8635 and the second target at 0.8660.
Resistance levels:
0.8635
0.8660
0.8695
Support levels:
0.8535
0.8510
0.8475
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Technical analysis of NZD/USD for April 2, 2014 . Thanks for your support on Technical analysis of NZD/USD for April 2, 2014
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