Overview:
NZD/USD is consolidating with bullish bias after hitting a near-three-week high of 0.8380 Monday. It is supported by Kiwi demand in the NZD/JPY cross amid positive investor risk appetite, Kiwi demand in the soft EUR/NZD and GBP/NZD crosses. But NZD/USD upside is limited by improved dollar sentiment. Daily chart is mixed as MACD is bearish, but stochastics is in bullish mode, the five-day moving average is meandering sideways.
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, a long position is recommended with the first target at 0.8420 and the second target at 0.8450. In alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8265, the breach of this target will move the pair further downwards and one may expect the second target at 0.8230. The pivot point stands at 0.8340.
Support levels:
0.8265
0.8230
0.8175
Resistance levels:
0.8420
0.8450
0.845
