Fundamental overview: NZD/USD is expected to consolidate with bulish bias as markets are awaiting the US non-farm payrolls report. NZD/USD is undermined by the broadly firmer dollar undertone, increased risk aversion, speculation that the Reserve Bank of New Zealand would cut interest rates in coming months, and soft dairy prices. But NZD/USD losses are tempered by the NZD-USD interest differential, kiwi demand on retreating AUD/NZD cross, and positions adjustment ahead of the weekend.
Technical comment: The daily chart is negative-biased as the MACD is bearish, stochastics is reverting to bearish mode at oversold levels, and 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 0.7170 and the second target at 0.7210. In the alternative scenario, short positions are recommended with the first target at 0.7080 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 0.7030. The pivot point is at 0.7105.
Resistance levels: 0.7170 0.7210 0.7270
Support levels: 0.7080 0.7030 0.7
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