Fundamental overview:
NZD/USD is expected to trade in higher range.It is Supported by egative dollar sentiment (ICE spot dollar index last 85.32 versus 85.66 early Wednesday) on dovish minutes of FOMC Sept. 16-17 meeting which showed the Federal Reserve was in no rush to raise interest rates and was concerned that the recent strength of the dollar could hurt U.S. exports and growth as well as putting downward pressure on already low levels of inflation. NZD/USD is also weighed by the lower U.S. Treasury yields (10-year at 2.318% versus 2.341% late Tuesday) and Japan exporter sales. There is also Kiwi demand on buoyant NZD/JPY and soft EUR/NZD crosses amid positive risk sentiment and Kiwi demand on retreating AUD/NZD cross. But NZD/USD gains are tempered by the weak dairy prices and threat of central bank intervention to weaken the NZD.
Technical comment:
Daily chart is positive-biased as stochastics is rising from oversold zone, MACD is staged bullish crossover against its exponential moving average.
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 0.8005 and the second target at 0.8095. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7830. A break of this target would push the pair further downwards and one may expect the second target at 0.7785. The pivot point is at 0.7785.
Resistance levels:
0.8005
0.8095
0.8125
Support levels:
0.7830
0.7785
0.7765
The material has been provided by InstaForex Company - www.instaforex.com
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