Overview:
NZD/USD is consolidating with bearish bias after hitting two-week low 0.7851 on Thursday. NZD/USD is undermined by bullish dollar sentiment; Kiwi sales on rebounding AUD/NZD cross. But NZD/USD losses are tempered by positive investor risk appetite; buoyant commodity prices; positions adjustment before weekend. Daily chart is tilting negative as stochastics falling from overbought; positive MACD histogram bars contracting; bearish parabolic stop-and-reverse signal hit at 0.7910 Thursday.
Trading recommendation:
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 0.784 in view, breach of this target will move further the pair downward and you should expect the second target at 0.778. Pivot point stands at 0.792. 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 0.7975 and the second target at 0.8015.
Support levels:
S1 - 0.784
S2 - 0.778
S3 - 0.77
Resistance levels:
R1 - 0.7975
R2 - 0.8015
R3 - 0.81
