Overview:
NZD/USD is trading in a range. It is undermined by increased investor risk aversion. But Kiwi sentiment is boosted by New Zealand NZIER quarterly survey showing rise in New Zealand business confidence in the third quarter to its highest level in more than three years, 32% of firms now expect business conditions to improve over the next six months, up from 30% in the second quarter. NZD/USD downside is also limited by negative dollar sentiment.
Technical outlook:
Daily chart is mixed as MACD and stochastics bearish, but five-day moving average is meandering sideways.
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 0.8265 in view; a breach of this target will move the pair further downwards to 0.82. The pivot point stands at 0.835. 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 0.8385 and the second target at 0.843.
Support levels:
0.8265
0.82
0.815
Resistance levels:
0.8385
0.843
0.84
