NZD/USD is expected to consolidate with bearish bias after hitting the five-year low of 0.6640 on Monday. It is undermined by the decreased investor risk appetite amid mounting concerns that Greece may leave the eurozone, soft dairy prices, and divergent monetary policy stances of the Reserve Bank of New Zealand and the US Federal Reserve. The New Zealand Q2 NZIER quarterly survey of business opinion showing a net 7% of firms now expects business conditions to improve over the next six months, down from 20% in the first quarter.
The daily chart is 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 0.660. A break of that target will move the pair further downwards to 0.6580. The pivot point stands at 0.6685. 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 0.6710 and the second target at 0.6735.
Resistance levels: 0.6710 0.6735 0.6780
Support levels: 0.66 0.6580 0.6550
The material has been provided by InstaForex Company – www.instaforex.com