Overview:
NZD/USD is expected to consolidate with a bearish bias after hitting three-week low at 0.8687 on Wednesday. It is undermined by the softer-than-expected New Zealand 2Q CPI which dented odds of further rate hikes from the Reserve Bank of New Zealand, weak dairy prices; Kiwi sales on buoyant AUD/NZD cross and the positive dollar sentiment. But NZD/USD losses are tempered by the NZD-USD interest differential and the positive risk sentiment. The daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is falling below 15-day MA.
Trading recommendations:
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 0.8650. A break of this target will move the pair further downwards to 0.8630. The pivot point stands at 0.8725. In case the price moves in the opposite direction and bounces back from the support level, then, it will 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 0.8745 and the second target at 0.8785.
Resistance levels:
0.8745
0.8785
0.8815
Support levels:
0.8650
0.8630
0.86
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For detail explanation and best discovery on market trends you may visit via Technical analysis of NZD/USD for July 17, 2014 . Thanks for your support on Technical analysis of NZD/USD for July 17, 2014
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