Overview:
NZD/USD is consolidating with bullish bias bias after hitting nine-month low of 0.7925 on Wednesday. The rate is undermined by increased risk aversion. But NZD/USD downside is limited by negative USD sentiment; Kiwi demand on soft AUD/NZD cross; buoyant commodity prices; caution ahead of U.S. May non-farm payrolls report Friday. Daily chart is negative-biased as MACD is bearish, stochastics is staying suppressed at oversold; five- and 15-day moving averages are declining.
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 favorable and buy position is recommended above its pivot with the first target at 0.798 and the second target at 0.8. You should keep in view short position below the pivot keep of the first target at 0.788 , breach of this target will move the pair downward further and expect the second target at 0.786. The pivot point stands at 0.79.
Resistance Levels:
R1 - 0.798
R2 - 0.8
R3 - 0.83
Support Levels:
S1 - 0.788
S2 - 0.786
S3 - 0.783
