23.09.201417:10 Forex Analysis & Reviews: Technical analysis of NZD/USD for Sep 23, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Fundamental Overview:

NZD/USD is expected to consolidate with a bearish bias. NZD/USD is undermined by Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion and weak commodity prices. But NZD/USD losses are tempered by the lower U.S. Treasury yields (10-year at 2.566% versus 2.587% late Friday), weaker dollar sentiment (ICE spot dollar index last 84.68 versus 84.74 early Monday) after surprise 1.8% drop in U.S. existing home sales to 5.05 million in August (versus forecast of 1.0% increase to 5.2 million), fall in Chicago Fed's National Activity Index to minus 0.21 in August from plus 0.26 in July, Kiwi demand on soft AUD/NZD cross and NZD-USD interest differential.

Technical Comment:
The daily chart is negative-biased as MACD is bearish, stochastics stays suppressed in the oversold zone, 5 and 15-day moving averages are falling.

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 176.75. A break of this target will move the pair further downwards to 175.80. The pivot point stands at 178.75. 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 179.15 and the second target at 179.90.

Resistance levels:
0.8145
0.8180
0.82

Support levels:
0.8045
0.8
0.7975

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.