Overview:
The NZD/USD is to consolidate as markets await the U.S. non-farm payrolls report. The NZD/USD is undermined by positive USD sentiment. But the NZD/USD downside limited by positive risk sentiment; the NZD/USD yield gap; Kiwi demand on soft AUD/NZD cross; firmer commodity prices; positions adjustment before weekend. Daily chart mixed as the MACD in bearish mode. However, stochastics is neutral.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in higher range as far as it remains above its pivot point. As far as the price is above its pivot point, trading in higher range is most favourable and buy position is recommended above its pivot with the first target at 0.854 and the second target at 0.856. You should keep in view the short position below the pivot, keep the first target at 0.8453. The breach of this target will move the pair downward further. The second target is seen at 0.856. The pivot point stands at 0.848.
Resistance levels:
R1 - 0.854
R2 - 0.856
R3 - 0.8585 (Tuesday's high)
Support levels:
S1 - 0.8453 (Thursday's low)
S2 - 0.843
S3 - 0.8381 (55-day moving average)
