Technical analysis of NZD/USD for January 21, 2014

Overview:

NZD/USD is expected to trade in higher range. It is supported by the surprise 0.1% quarter rise in New Zealand 4Q CPI (versus the forecast 0.1% fall),the hawkish Reserve Bank of New Zealand’s monetary policy stance and Kiwi demand on soft AUD/NZD cross, rebounding of NZD/JPY cross, and broadly weaker dollar undertone. Daily chart is mixed as stochastics is in bearish mode, but MACD is still bullish.

Trading recommendation:

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 far as the price is above its pivot point, a long position is recommended with the first target at 0.8335 and the second target at 0.839 in mind. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8225. A breach of this target will move the pair further downwards and one may expect the second target at 0.8195. The pivot point stands at 0.827.

Resistance levels:

0.8355

0.8385

0.8425

Support levels:

0.8225

0.8195

0.8155

The material has been provided by InstaForex Company – www.instaforex.com

Read more here: Technical analysis of NZD/USD for January 21, 2014