NZD/USD is expected to consolidate with a bearish bias after hitting a two-week high 0.7927 on Thursday. It is underpinned by the softer dollar sentiment, Kiwi demand on buoyant NZD/JPY cross amid the weak yen sentiment and on buoyant NZD/CAD cross amid weak oil prices, Kiwi demand on soft GBP/NZD and speculation about earlier-than-expected RBNZ rate rises in 2015 and NZD-USD interest differential. But NZD/USD gains are tempered by the soft commodity prices and subdued investor risk appetite as well as positions adjustment before the weekend.
Daily chart positive-biased as MACD and stochastics are bullish, five-day moving average is rising above 15-day moving average.
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.7805. A break of this target will move the pair further downwards to 0.7770. The pivot point stands at 0.7895. In case the price moves in the opposite direction and bounces back from the support level, then it will move above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.7945 and the second target at 0.7965.
The material has been provided by InstaForex Company – www.instaforex.com