Overview:
NZD/USD is consolidating with bullish bias after hitting a four-month high of 0.8382 Wednesday. Underpinned by stronger-than-expected New Zealand 2Q GDP on-year growth of +2.5% (versus +2.2% forecast); Kiwi demand on soft AUD/NZD cross; negative dollar sentiment; positive risk appetite; stronger commodity prices; hawkish Reserve Bank of New Zealand's monetary policy stance. Daily chart positive-biased as MACD & stochastics bullish, although latter at overbought, five- & 15-day moving averages advancing.
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 a higher range is the most favorable and a buy position is recommended above its pivot, with the first target at 0.8435 and the second target at 0.848. You should keep in view short positions below the pivot. Keep the first target at 0.828. The breach of this target will move the pair downwards further and one may expect the second target at 0.824.The pivot point stands at 0.8325.
Resistance levels:
0.8435
0.848
0.851
Support levels:
0.828
0.824
0.82
