NZD/USD is expected to trade with a bearish bias. It is undermined by mounting risk appetite as uncertainty about Greece’s lingers, divergent Reserve Bank of New Zealand-Federal Reserve monetary policy stances, and lower dairy prices. The kiwi is also vulnerable to movements in China’s stocks.
The daily chart is mixed as the MACD and stochastics are bullish but bearish outside-day-range pattern was completed om Friday.
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 0.6675. A break of that target will move the pair further downwards to 0.6650. The pivot point stands at 0.6750. 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 0.6815.
Resistance levels: 0.6780 0.6815 0.6845
Support levels: 0.6675 0.6650 0.6615
The material has been provided by InstaForex Company – www.instaforex.com