Overview:
NZD/USD is consolidating with risks skewed higher after hitting two-month low of 0.8173 on Wednesday. The rate is underpinned by weaker USD sentiment, NZD-USD yield gap. But NZD/USD gains tempered by soft commodity prices. Daily chart is mixed as MACD is bearish, 5- and 15-day moving averages are falling; but stochastics is turning bullish at oversold.
Trading recommendations:
The pair is trading below its pivot point. The pair is likely to trade in lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8125 in view, breach of this target will move further the pair downward and you should expect the second target at 0.8108. Pivot point stands at 0.82. In case the price moves in opposite direction and returns from its support and moves above its pivot point then trading in higher range is the most favorable and buy position is recommended above its pivot with the first target at 0.8255 and the second target at 0.8317.
Resistance levels:
R1 - 0.8255 (Wednesday high)
R2 - 0.8317 (Monday's high)
R3 - 0.8417 (Friday's high)
Support levels:
S1 - 0.8159-0.8153 band (March 13 low-Dec. 26 low)
S2 - 0.8108 (Nov. 21 low)
S3 - 0.8048 (Nov. 16 reaction low).
