NZD/USD is expected to consolidate in a lower range as markets await the US FOMC interest rate decision. The NZD sentiment is dented by a decrease of 8.8% in Fonterra’s GDT Price Index and a drop of 9.6% in average price for whole milk powder to $2,928/MT at the latest Global Dairy Trade auction. NZD/USD is also weighed by kiwi sales on the buoyant AUD/NZD cross and subdued investor risk appetite. The NZD/USD losses are tempered by the NZD-USD yield differential.
The daily chart is tilting negative as the MACD is bearish, stochastics is reverting to bearish mode.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.7265. A break of that target will move the pair further downwards to 0.7215. The pivot point stands at 0.7360. 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, a long position is recommended with the first target at 0.74 and the second target at 0.7445.
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