NZD/USD is likely to consolidate toda after hitting a five-year low of 0.6659 on Thursday. The price is undermined by lower dairy prices, diminished investor risk appetite, divergent Reserve Bank of New Zealand-Federal Reserve monetary policy stances and kiwi sales on buoyant AUD/NZD cross. But NZD/USD downside is limited by weaker sentiment toward the US dollar (ICE spot dollar index last 96.08 versus 96.32 early Thursday).
The daily is chart still negative-biased as the MACD is bearish, stochastics stays suppressed at oversold levels, five- and 15-day moving averages are declining.
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 0.6660. A break of that target will move the pair further downwards to 0.6630. The pivot point stands at 0.6800. 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 0.6780 and the second target at 0.6825.
Resistance levels: 0.6780 0.6825 0.6850
Support levels: 0.6660 0.6630 0.66
The material has been provided by InstaForex Company – www.instaforex.com