Overview:
NZD/USD is trading in higher range. The rate is undermined by positive USD sentiment. But NZD/USD losses tempered firmer commodity prices; NZD-USD yield gap; Kiwi demand on buoyant NZD/JPY as weak yen sentiment supports the cross. Daily chart is negative-biased as MACD and stochastics are bearish; five-day moving average is below 15-day MA and falling. Risk sentiment was boosted after the International Monetary Fund said markets had overreacted to recent lackluster Chinese data and that China's economy remains on track to grow 8% this year; positive USD sentiment on higher U.S equities.
Trading recommendation:
At the best-case scenario the pair is trading in higher ranges and if it continues the above mentioned behavior and is traded above its pivot point predicted, then buys with upside targets at 0.848 and 0.851 will be preferred where Pivot point stands at 0.8395. In case the price moves in opposite direction and returns from its resistance or moves below its pivot point then it will be most favorably to trade in lower range and sell below the pivot point with first target at 0.837 and second target at 0.8335.
Resistance levels:
R1 - 0.8491 (Friday's high), R2 - 0.8509 (Wednesday's high), R3 - 0.8581 (April 15 high)
Support levels:
S1 - 0.8373 (April 15 low) S2 - 0.8323 (March 25 low), S3 - 0.8251 (200-day moving average)
