NZD/USD is expected to trade in a higher range. It is underpinned by the broadly weaker dollar undertone, kiwi demand on soft AUD/NZD cross, and NZD-USD interest differential. But NZD/USD gains are tempered by increased investor risk aversion, dovish Reserve Bank of New Zealand monetary policy stance, and low dairy prices.
Technical comment: The daily chart is mixed as the MACD is bearish, 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 0.7170 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
The material has been provided by InstaForex Company – www.instaforex.com