Overview:
NZD/USD is trading with bearish bias. The rate is undermined by contagion from weak Aussie; weak commodity prices; and Kiwi sales on soft NZD/JPY cross. But NZD/USD losses tempered by NZD-USD yield gap. Daily chart is negative-biased as MACD is bearish, stochastics is staying suppressed at oversold, five- and 15-day moving averages falling.
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 0.806 in view, breach of this target will move further the pair downward and you should expect the second target at 0.8005. Pivot point stands at 0.8115. 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 0.8155 and the second target at 0.8185.
Resistance levels:
R1 - 0.8155
R2 - 0.8185
R3 - 0.814
Support levels:
S1 - 0.806
S2 - 0.8005
S3 - 0.7975
