Technical analysis of NZD/USD for January 27, 2015 Market Analysis Review

Fundamental overview:
NZD/USD is expected to consolidate with bearish bias after hitting a three-year low 0.7394 on Monday. It is undermined by the expectations that the Reserve Bank of New Zealand will keep its rates for longer. the pair is also weakened by the kiwi sales on buoyant AUD/NZD cross and weak commodity prices. But NZD/USD losses are tempered by the softer USD sentiment and receding risk aversion.

Technical comment:

The daily chart is negative-biased as the MACD and stochastics are bearish, although the latter is at oversold levels; five and 15-day moving averages are declining.

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 0.74. A break of this target will move the pair further downward to 0.7325. The pivot point stands at 0.75. 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. According to that scenario, a long position is recommended with the first target at 0.7580 and the second target at 0.7625.

Resistance levels:

0.7580

0.7625

0.7635



Support levels:

0.74

0.7325

0.73

The material has been provided by InstaForex Company - www.instaforex.com



For detail explanation and best discovery on daily market trends and news you may visit via Technical analysis of NZD/USD for January 27, 2015 . Thanks for your support.