Overview:
NZD/USD is expected to trade with a bearish bias. It is undermined by the softer-than-expected New Zealand 2Q CPI of +0.3% on-quarter (versus +0.4% forecast), 8.9% drop in GlobalDairyTrade Price index in overnight auction, the positive dollar sentiment, Kiwi sales on soft NZD/JPY cross amid subdued investor risk appetite, and Kiwi sales on firmer AUD/NZD cross. But NZD/USD losses are tempered by the hawkish Reserve Bank of New Zealand's monetary policy stance and NZD-USD interest differential. the daily chart is negative-biased as stochastics is falling from the overbought zone. MACD histogram bars are turning negative.
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 0.8675. A break of this target will move the pair further downwards to 0.8650. The pivot point stands at 0.8745. 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 0.8785 and the second target at 0.8815.
Resistance levels:
0.8785
0.8815
0.8845
Support levels:
0.8675
0.8650
0.8625
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 16, 2014 . Thanks for your support on Technical analysis of NZD/USD for July 16, 2014
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