Overview:
NZD/USD is expected to consolidate in a higher range after hitting near-one-month low at 0.8524 on Monday. It is supported by the Kiwi demand on NZD/JPY cross amid positive risk appetite, NZD-USD interest differential and reduced concerns over China's economy. But Kiwi sentiment is dented by the smaller-than-expected New Zealand April trade surplus. Daily chart is still negative-biased as five-day moving average is below 15-day MA and is declining, MACD and stochastics are bearish, although latter is at oversold zone.
Trading recommendation:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8580 and the second target at 0.8595. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8510. A breach of this target will push the pair further downwards and one may expect the second target at 0.8485. The pivot point is at 0.8530.
Resistance levels:
0.8580
0.8595
0.8635
Support levels:
0.8510
0.8485
0.8450
The material has been provided by InstaForex Company - www.instaforex.com
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