NZD/USD is expected to consolidate in a higher range after hitting a two-month high of 0.7695 on Tuesday. It is undermined by the stronger USD sentiment and subdued investor risk appetite. The NZD/USD losses are tempered by the NZD-USD yield differential.
The daily chart is still positive-biased as the MACD and stochastics are bullish, although the latter at overbought levels. Five-day moving average is above 15-day moving average and is advancing.
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.77 and the second target at 0.7775. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.7530. A break of this target would push the pair further downwards, and one may expect the second target at 0.7455. The pivot point is at 0.7590.
The material has been provided by InstaForex Company – www.instaforex.com