NZD/USD is expected to trade in a lower range. It is undermined by stronger dollar sentiment, new NZ capital gains tax on residential property investments, which many speculators would pave the way for interest rate cuts in coming months, larger-than-expected decline by 1.1% on-quarter in New Zealand Q1 producer input prices (versus forecast -0.7%), weak dairy prices, and kiwi sales on the buoyant AUD/NZD cross. But NZD/USD losses are tempered by positive investor risk sentiment and NZD-USD interest differential.
The daily chart is tilting negative as the MACD is in bearish mode, stochastics is turning bearish.
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.7405. A break of that target will move the pair further downwards to 0.7335. The pivot point stands at 0.7500. 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, long positions are recommended with the first target at 0.7560 and the second target at 0.76.
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