Overview:
NZD/USD is trading with risks skewed lower. It is undermined by Kiwi sales in the soft NZD/JPY cross amid subdued investor risk appetite, Kiwi sales in the rebounding AUD/NZD cross, concerns that China's economy was slowing, weaker commodity prices. But NZD/USD losses are tempered by negative dollar sentiment. Daily chart is negative-biased as stochastics is falling from overbought zone, MACD histogram bars are turning negative.
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. A short position is recommended with the first target at 0.815 in view; a breach of this target will move the pair further downwards to 0.812. The pivot point stands at 0.825. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, then the price is most favorably expected to move further to the upside, In that scenario a long position is recommended with the first target at 0.828 and the second target at 0.834.
Support points:
0.815
0.815
0.8075
Resistance points:
0.828
0.834
0.84
