Overview:
NZD/USD is expected to consolidate with bearish bias after hitting one-week low at 0.8602 on Friday. It is undermined by the broadly stronger dollar undertone, weaker commodity prices and continued impact from RBNZ Gov. Wheeler's comment that a high Kiwi exchange rate in face of weakening fundamentals may prompt RBNZ to intervene to sell NZD and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the diminished concerns over China's economy after upbeat China April trade data. Daily chart is negative-biased as stochastics is falling from overbought zone, MACD is staging bearish crossover against its exponential moving average.
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 0.8595. A breach of this target will move the pair further downwards to 0.8545. The pivot point stands at 0.8670. 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 0.8710 and the second target at 0.8745.
Resistance levels:
0.8710
0.8745
0.8780
Support levels:
0.8595
0.8545
0.8525
The material has been provided by InstaForex Company - www.instaforex.com
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