NZD/USD is expected to trade in a higher range. It is underpinned by weaker dollar sentiment, improved investor risk appetite, kiwi demand on the soft AUD/NZD cross, and NZD-USD interest differential. But NZD/USD gains are tempered by soft dairy prices and the expectations that the RBNZ would cut its interest rates in coming months.
The daily chart is mixed as the MACD is bearish, 5 and 15-day moving averages are falling but stochastics is turning bullish at oversold levels.
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 0.6570 and the second target at 0.6550. In the alternative scenario, short positions are recommended with the first target at 0.6670 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 0.67. The pivot point is at 0.66.
Resistance levels: 0.6670 0.67 0.6750
Support levels: 0.6570 0.6550 0.6505
The material has been provided by InstaForex Company – www.instaforex.com