Overview:
The NZD/USD is to consolidate with bullish bias after hitting the five-month high of 0.8524 Thursday. Supported by negative dollar sentiment, the kiwi demand on NZD/JPY cross amid positive investor risk appetite. But the NZD/USD gains were tempered by kiwi sales on buoyant AUD/NZD cross and positions adjustment before weekend. The kiwi was vulnerable to 02:00 GMT China 3Q GDP data. The daily chart is positive-biased as MACD & stochastics are bullish, although the latter is in the overbought zone; the five-day moving average is above 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 0.852 and the second target at 0.8555. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8395. The breach of this target will move the pair further downwards and one may expect the second target at 0.834. The pivot point stands at 0.844.
Support levels:
0.8395
0.834
0.83
Resistance levels:
0.852
0.8555
0.859
