Overview:
NZD/USD is consolidating with bearish bias after hitting an eight-day low of 0.8318 Thursday. It is undermined by the kiwi sales in the buoyant AUD/NZD cross. But NZD/USD downside is limited by the soft dollar sentiment; positive investor risk appetite; positions adjustment before the weekend. Daily chart is negative-biased as MACD and stochastics are bearish.
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 0.826 in view; a breach of this target will move the pair further downwards to 0.823. The pivot point stands at 0.8355. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, 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 0.84 and the second target at 0.844.
Support levels:
0.826
0.823
0.82
Resistance levels:
0.84
0.844
0.849
