NZD/USD is expected to consolidate with a bullish bias after hitting a five-year low 0.6619 on Tuesday. It is undermined by the broadly firmer dollar undertone and divergent Reserve Bank of New Zealand-Federal Reserve monetary policy stances, lower dairy prices and the weak aussie. But NZD/USD losses are tempered by improved investor risk tolerance and kiwi demand on soft AUD/NZD cross.
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 above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6710 and the second target at 0.6730. In the alternative scenario, short positions are recommended with the first target at 0.66 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6580. The pivot point is at 0.6630.
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