NZD/USD is expected to consolidate with a bullish bias after hitting a three-week low at 0.7457 on Wednesday. It is undermined by the soft New Zealand 1Q unemployment data, weak dairy prices, Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion, and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the negative USD sentiment and NZD-USD interest differential.
The daily chart is negative-biased as MACD and stochastics are bearish, five-day moving average is below 15-day moving average and is 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 0.7580 and the second target at 0.7635. In the alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7410. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7370. The pivot point is at 0.7455.
The material has been provided by InstaForex Company – www.instaforex.com