NZD/USD is expected to consolidate with bullish bias. It is trading with lower liquidity as the market is waiting for Non-Farm payroll data. It is undermined by positive dollar sentiment, weak commodity prices (CRB spot index closed down 0.42% at 214.25 Monday), and 6.3% drop in New Zealand building consents. But NZD/USD losses are tempered by the kiwi demand on the soft AUD/NZD cross and positive investor risk appetite.
The risk of the downside breakout of this threshold is still high, as the intraday RSI lacks upward momentum, and the declining 50-period simple moving average acts as a resistance role.
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price keeps above its pivot point, long positions are recommended with the first target at 0.6655 and the second target at 0.6695. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.6535. A break of this target would push the pair further downwards, and one may expect the second target at 0.65. The pivot point is at 0.6575.
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