Overview:
NZD/USD is expected to range-trade. It is supported by the Kiwi demand on NZD/JPY cross amid positive risk sentiment. But NZD/USD upside is limited by the continued impact from RBNZ Gov. Wheeler's comment last week 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. Daily chart is still negative-biased as stochastics is falling from overbought zone, MACD staged bearish crossover against its exponential moving average, although inside-day-range pattern was completed on Monday.
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
For detail explanation and best discovery on market trends you may visit via Technical analysis of NZD/USD for May 13, 2014 . Thanks for your support on Technical analysis of NZD/USD for May 13, 2014
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