Overview:
NZD/USD is consolidating with bullish bias after hitting a three-week high of 0.8403 Tuesday. It is supported by higher-than-expected 1.4% on-year rise in New Zealand 3Q CPI (versus +1.3% forecast); weak dollar sentiment; Kiwi demand on soft EUR/NZD and GBP/NZD crosses. But NZD/USD upside is limited by Kiwi sales in the NZD/JPY cross amid increased investor risk aversion; Kiwi sales on buoyant AUD/NZD cross. Daily chart is positive-biased as stochastics is bullish, negative MACD histogram bars are contracting, the five-day moving average is above the 15-day MA and 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, a long position is recommended with the first target at 0.8450 and the second target at 0.8475. In alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8305, the breach of this target will move the pair further downwards and one may expect the second target at 0.8265. The pivot point stands at 0.8370.
Support levels:
0.8305
0.8265
0.8230
Resistance levels:
0.8450
0.8475
0.85
