Overview:
NZD/USD is trading with bearish bias. The rate is weighted by stronger dollar sentiment; soft commodity prices; Kiwi sales on NZD/JPY cross amid increased risk aversion and contagion from weak regional emerging-market currencies; reduced expectations for near-term RBNZ rate hike; Kiwi sales on buoyant AUD/NZD cross. Daily chart is negative-biased as MACD and stochastics are in bearish mode; bearish parabolic stop-and-reverse signal hit at 0.7875 on Wednesday.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short positions are recommended with the first target at 0.78 in view; a breach of this target will move the pair downwards further and you should expect the second target at 0.776. The pivot point stands at 0.786. In case the price moves in the opposite direction, returns from its support, and moves above its pivot point, then trading in a higher range is the most favorable and positions buying is recommended above its pivot with the first target at 0.789 and the second target at 0.7945.
Support Levels:
S1 - 0.78
S2 - 0.776
S3 - 0.7725
Resistance Levels:
R1 - 0.789
R2 - 0.7945
R3 - 0.7995
