Overview:В
NZD/USD is expected to trade lower. It is supported by the positive dollar sentiment and buoyant commodity prices. The NZIER 4Q quarterly survey of business opinion showed that net 52% of New Zealand firms are now expecting business conditions to improve over the next six months, up from a net 33% in 3Q. TheВ NZD/USD gains are tempered by Kiwi sales on soft the NZD/JPY cross amid increased investor risk aversion and concerns over the weak economic outlook for China. Daily chart is positive-biased as MACD and stochastics are bullish, although latter at overbought zone, five-day moving average is above 15-day MA and still advancing.В
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. A short position is recommended with the first target at 0.8425 in mind. A breach of this target will move the pair further downwards to 0.897. The pivot point stands at 0.8385. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 0.83 and the second target at 0.8265.В
Resistance levels:В
0.8425
0.8445В
0.85
Support levels:В
0.83В
0.8265В
0.824В