NZD/USD is expected to consolidate. It is undermined by the comment of the Reserve Bank of New Zealand that it will keep investigating the use of macroprudential tools to control the housing market. NZD/USD is also weighed by the kiwi sales on the buoyant AUD/NZD cross, decreased investor risk appetite, divergent monetary policy stances the Reserve Bank of New Zealand and the US Federal Reserve, and soft dairy prices. But kiwi sentiment is boosted by the surprise New Zealand May trade surplus of NZ$350 million (versus forecast for NZ$100 million deficit). NZD/USD downside is also limited by the positions adjustment ahead of the weekend.
The daily chart mixed as five- and 15-day moving averages are declining but stochastics is bullish at oversold levels.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6480. A break of that target will move the pair further downwards to 0.6410. The pivot point stands at 0.6605. 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 mo ve further to the upside. According to that scenario, long positions are recommended with the first target at 0.6670 and the second target at 0.6410.
Resistance levels: 0.6670 0.6725 0.6775
Support levels: 0.6480 0.6410 0.6360
The material has been provided by InstaForex Company – www.instaforex.com