Overview:
NZD/USD is expected to consolidate with bearish bias after hitting a near-one-month low at 0.8529 on Friday. It is undermined by the positive USD sentiment and smaller-than-expected New Zealand April trade surplus of NZ$534 million (versus NZ$634 million forecast). But NZD/USD losses are tempered by the Kiwi demand on NZD/JPY cross amid positive risk appetite, NZD-USD interest differential and reduced concerns over China's economy. Daily chart is negative-biased as five-day moving average is below 15-day MA and is declining, MACD and stochastics are bearish, although the latter is at oversold 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 0.8510. A breach of this target will move the pair further downwards to 0.8485. The pivot point stands at 0.8570. 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 0.8600 and the second target at 0.8635.
Resistance levels:
0.86
0.8635
0.8655
Support levels:
0.8510
0.8485
0.8450
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 26, 2014 . Thanks for your support on Technical analysis of NZD/USD for May 26, 2014
No comments:
Post a Comment