Overview:
NZD/USD is expected to consolidate with risks skewed higher after hitting three-week low at 0.8534 on Wednesday. It is supported by the Kiwi demand on NZD/JPY cross amid reduced risk aversion and NZD/USD interest differential. But NZD/USD gains are tempered by the Kiwi sales on rebounding AUD/NZD cross and concerns over China's economy. Daily chart is still negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day MA and is declining.
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 0.8600. 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 0.8655.
Resistance levels:
0.8635
0.8655
0.8695
Support levels:
0.8535
0.8510
0.8475
The material has been provided by InstaForex Company - www.instaforex.com
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