Overview:
NZD/USD is expected to trade with bullish bias fundamentaly, but technically it is expected to trade lower. It is supported by the news that Fonterra Co-operative Group forecast will pay its 10,500 farmer shareholders NZ$7.0 per kilogram of milk solids in the season that starts June 1 at the high end of the range the market was expecting. NZD/USD is also buoyed by Kiwi demand on NZD/JPY cross amid positive risk appetite, NZD-USD interest differential and reduced concerns over China's economy. But NZD/USD gains are tempered by the positive dollar sentiment. Daily chart is mixed as MACD is bearish, but stochastics turned bullish 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 0.8520. A breach of this target will move the pair further downwards to 0.8485. The pivot point stands at 0.8575. 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 0.8595 and the second target at 0.8620.
Resistance levels:
0.8595
0.8620
0.8645
Support levels:
0.8520
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 28, 2014 . Thanks for your support on Technical analysis of NZD/USD for May 28, 2014
No comments:
Post a Comment