NZD/USD is expected to trade in a higher range. It is supported by the weaker dollar sentiment and the NZD-USD yield differential. The NZD/USD gains are tempered by the subdued investor risk appetite and kiwi sales on the rebounding AUD/NZD cross. Kiwi is vulnerable to the report on China’s HSBC flash manufacturing PMI for March that is due at 01:45 GMT.
The daily chart is positive-biased as the MACD and stochastics are bullish, 5-day moving average is above 15-day moving average and is advancing.
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 0.7765. The break of that target will move the pair further downwards to 0.7730. The pivot point stands at 0.7835. 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 0.7870 and the second target at 0.7905.
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