Overview:
NZD/USD is consolidating with bearish bias after hitting near-nine-month low of 0.7934 Friday. Financial markets in New Zealand are shut today for holiday. NZD/USD is undermined by positive dollar sentiment; increased risk aversion; weaker commodity prices; Kiwi sales on rebounding AUD/NZD 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 are 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 0.7935 in view, breach of this target will move further the pair downward and you should expect the second target at 100.55. Pivot point stands at 0.796. 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 0.806 and the second target at 0.81.
Resistance levels:
R1 - 0.806
R2 - 0.81
R3 - 0.812
Support levels:
S1 - 0.7935
S2 - 0.79
S3 - 0.7965
