Overview:
NZD/USD is trading with risks skewed higher. It is supported by softer dollar sentiment; positive risk appetite; optimism over economic pickup in China. But NZD/USD gains are tempered by weak commodity prices; the Kiwi sales in the rebounding AUD/NZD cross. Daily chart is mixed as MACD is bearish, but stochastics is turning bullish staying at oversold area.
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 0.824 in view; a breach of this target will move the pair further downwards to 0.821. The pivot point stands at 0.831. 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 0.836 and the second target at 0.84.
Support levels:
0.824
0.82 1
0.8175
Resistance levels:
0.836
0.84
0.844
