NZD/USD: Bearish bias
NZD/USD is trading with bearish bias. The rate is undermined by soft commodity prices; contagion from weak Aussie; Kiwi sales on soft NZD/JPY and NZD/CHF crosses. But NZD/USD losses tempered by Kiwi demand on soft AUD/NZD cross; NZD-USD yield gap. Daily chart is negative-biased as MACD is bearish, stochastics is staying suppressed at oversold, five- and 15-day moving averages are falling; although inside-day-range pattern was completed on Friday.
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 0.8064 in view, breach of this target will move further the pair downward and you should expect the second target at 0.8004. Pivot point stands at 0.8115. 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 0.8155 and the second target at 0.8171.
S1 – 0.8064 (Friday’s low)
S2 – 0.8004-0.8000 (Thursday’s six-month low-psychological line)
S3 – 0.7909 (Sept. 5 reaction low)
R1 – 0.8155 (Friday’s high)
R2 – 0.8171 (Thursday’s high)
R3 – 0.8205-0.8212 band (Wednesday’s high-Tuesday’s high)
The material has been provided by InstaForex Company – www.instaforex.com