Overview:
NZD/USD is expected to consolidate in a lower range after hitting two-and-a-half year high at 0.8698 on Friday. It is undermined by the positive dollar sentiment. But NZD/USD losses are tempered by the kiwi demand on NZD/JPY cross amid the risk appetite and weak yen sentiment, buoyant commodity prices, kiwi demand on soft AUD/NZD cross, hawkish monetary policy of the Reserve Bank of New Zealan and hope for further stimulus in China. Daily chart is still positive-biased as MACD and stochastics are bullish, five- and fifteen-day moving averages are advancing, although bearish shooting-star candlestick pattern was completed on Friday.
Trading recommendation:
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 0.8620. A breach of this target will move the pair further downwards to 0.8585. The pivot point stands at 0.8695. In case the price moves in the opposite direction and bounces back from support level, and then it 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 0.8720 and the second target at 0.8750.
Resistance levels:
0.8720
0.8750
0.8780
Support levels:
0.8620
0.8585
0.8565
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 March 31, 2014 . Thanks for your support on Technical analysis of NZD/USD for March 31, 2014
No comments:
Post a Comment