NZD/USD is expected to consolidate with a bearish bias. It is undermined by the expectations that the Reserve Bank of New Zealand will leave rates after soft New Zealand Q4 CPI and surprising interest rate cut by the Bank of Canada. NZD/USD is also weighed by the positive dollar sentiment and kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the positive global risk sentiment and positions adjustment ahead of the weekend.
The daily chart is negative-biased as the MACD and slow stochastic indicators are bearish; 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 far as it remains below the pivot point. Short positions are recommended with the first target at 0.6535. A break of that target will move the pair further downwards to 0.65. The pivot point stands at 0.6615. 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 move further to the upside. According to that scenario, a long position is recommended with the first target at 0.6655 and the second target at 0.6695.
Resistance levels: 0.6655 0.6695 0.6745
Support levels: 0.6535 0.65 0.6435
The material has been provided by InstaForex Company – www.instaforex.com