NZD/US is expected to trade with bullish bias. It is undermined by the positive dollar sentiment, soft dairy prices, decreased investor risk appetite and speculation that the RBNZ would cut interest rate in the coming months. But NZD/USD losses are tempered by the kiwi demand on the soft AUD/NZD cross and NZD-USD interest differential.
The daily chart is negative-biased as the MACD is bearish; stochastics stays suppressed at oversold levels; 5 and 15-day moving averages are falling.
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 0.7370 and the second target at 0.7395. In the alternative scenario, short positions are recommended with the first target at 0.7230 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 0.7195. The pivot point is at 0.7280.
The material has been provided by InstaForex Company – www.instaforex.com