Overview:
NZD/USD is consolidating with bearish bias after hitting near-six-month low of 0.8137 on Thursday. The rate is undermined by contagion from weak Aussie; renewed speculation that Federal Reserve might taper its bond-buying program in coming months. But NZD/USD losses tempered by soft U.S. economic data; NZD-USD yield gap; positions adjustment before weekend. Daily chart is negative-biased as bearish outside-day-range pattern was completed on Thursday; MACD is bearish; stochastics is staying suppressed at oversold; 5- and 15-day moving averages are falling.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8048 in view, breach of this target will move further the pair downward and you should expect the second target at 0.7909. Pivot point stands at 0.8145. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.817 and the second target at 0.821.
Support levels:
S1 - 0.8048 (Nov. 16 reaction low)
S2 - 0.7909 (Sept. 5 reaction low)
S3 - 0.7905
Resistance levels:
R1 - 0.817
R2 - 0.821
R2 - 0.8271 (Thursday's high)
The material has been provided by InstaForex Company - www.instaforex.com