Overview:
NZD/USD is expected to consolidate with bullish bias after hitting five-week high at 0.8699 on Thursday. The Kiwi sentiment is bullish after Reserve Bank of New Zealand on Thursday raised its cash rate by 25 bps to 3.25% and signaled more rate increases in coming months. NZD/USD is also supported by the negative dollar sentiment and the Kiwi demand on soft AUD/NZD cross. But NZD/USD gains are tempered by the negative global risk sentiment and positions adjustment before weekend. Daily chart is positive-biased as MACD and stochastics are bullish, although latter is at overbought zone, five-day moving average is above 15-day MA and is advancing.
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 0.8710 and the second target at 0.8745. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8560. A breach of this target will push the pair further downwards and one may expect the second target at 0.8525. The pivot point is at 0.8620.
Resistance levels:
0.8710
0.8745
0.8775
Support levels:
0.8560
0.8525
0.8475
The material has been provided by InstaForex Company - www.instaforex.com
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