18.07.201418:25 Forex Analysis & Reviews: Technical analysis of NZD/USD for July 18, 2014

Long-term review

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Overview:

NZD/USD is expected to trade in a lower range. It is undermined by the Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion and continued impact from softer-than-expected New Zealand 2Q CPI which dented odds of further rate hikes from the Reserve Bank of New Zealand, weak dairy prices, and Kiwi sales on buoyant AUD/NZD cross. But NZD/USD losses are tempered by the NZD-USD interest differential and positions adjustment before the weekend. The daily chart is negative-biased as MACD and stochastics is bearish, five-day moving average is falling below 15-day MA.

Trading recommendations:
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 0.8650. A break of this target will move the pair further downwards to 0.8630. The pivot point stands at 0.8725. In case the price moves in the opposite direction and bounces back from the support level, then, it will moves 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 0.8745 and the second target at 0.8785.

Resistance levels:
0.8745
0.8785
0.8815

Support levels:
0.8650
0.8630
0.86

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