Overview:
NZD/USD is expected to consolidate with a bullish bias after hitting a two-month low at 0.8459 on Friday. It is supported by the weaker USD sentiment, NZD-USD interest differential and Kiwi demand on soft AUD/NZD cross. But NZD/USD upside is limited by the Kiwi sales on soft NZD/JPY cross amid increasing investor risk aversion and weak dairy prices. The daily chart is mixed as MACD is bearish, five and 15-day moving averages are declining, but bullish outside-day-range pattern was completed on Friday, stochastics is turned bullish to the oversold zone.
Trading recommendations:
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 long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.8560 and the second target at 0.8585. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8430. A break of this target would push the pair further downwards and one may expect the second target at 0.84. The pivot point is at 0.8460.
Resistance levels:
0.8560
0.8585
0.8620
Support levels:
0.8430
0.84
0.8375
The material has been provided by InstaForex Company - www.instaforex.com
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