Overview:
NZD/USD is expected to range-trade. It is undermined by the positive USD sentiment. But NZD/USD downside is limited by the Kiwi demand on soft AUD/NZD cross, Kiwi demand on NZD/JPY cross amid positive investor risk appetite, hawkish Reserve Bank of New Zealand's monetary policy stance, NZD-USD interest differential and positions adjustment before weekend. Daily chart is mixed as MACD is bullish, but stochastics is turned bearish at overbought 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 0.8720. A breach of this target will move the pair further downwards to 0.87. The pivot point stands at 0.8790. In case the price moves in the opposite direction and bounces back from the 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 0.8835 and the second target at 0.8860.
Resistance levels:
0.8835
0.8860
0.8880
Support levels:
0.8720
0.87
0.8680
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 July 04, 2014 . Thanks for your support on Technical analysis of NZD/USD for July 04, 2014
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