Overview:
NZD/USD is consolidating with bullish bias after hitting an eight-day high of 0.8046 Thursday. It is supported by Kiwi demand on buoyant NZD/JPY cross amid positive global risk sentiment; stronger commodity prices. But NZD/USD gains are tempered by Kiwi sales on rebounding AUD/NZD cross; positions adjustment before weekend. Kiwi vulnerable to China July CPI and China July industrial output, retail sales data. Daily chart positive-biased as stochastics is rising from oversold zone; MACD is staging bullish crossover against its exponential moving average; bullish parabolic stop-and-reverse signal is hit at 0.8023 Thursday.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a 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 buing positions above its pivot with the first target at 0.8045 and the second target at 0.81 is recommemded. You should keep in view short positions below the pivot at the first target at 0.793, a breach of this target will direct the pair downwards further and the second target at 0.788 is expected. The pivot point is at 0.797.
Resistance levels:
R1 - 0.8045
R2 - 0.81
R3 - 0.8175
Support levels :
S1 - 0.793
S2 - 0.788
S3 - 0.781
