Fundamental overview:
NZD/USD is expected to trade in a lower range. It is undermined by the increased risk aversion and weak commodity prices. But NZD/USD losses are tempered by the weaker USD sentiment (last ICE spot dollar index 88.20 versus 88.52 on early Friday) as the U.S. Treasury yields fell (10-year at 2.103% versus 2.178% on late Thursday), the U.S. PPI dropped 0.2% on month in November (versus forecast -0.1%) and haven buying of the U.S. Treasury bonds and NZD-USD interest differential.
Technical Comment:
The daily chart is mixed as stochastics is in bullish mode, but the MACD is bearish.
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 the pivot point. Short positions are recommended with the first target at 0.7765. A break of this target will move the pair further downward to 0.7730. The pivot point stands at 0.7835. In case the price moves in the opposite direction and bounces back from the support level, it will move 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 0.7870 and the second target at 0.7905.
Resistance levels:
0.7870
0.7905
0.7945
Support levels:
0.7765
0.7730
0.77
The material has been provided by InstaForex Company - www.instaforex.com
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