Overview:
NZD/USD is consolidating with bullish bias after hitting two-week high 0.8414 on Wednesday. The rate is buoyed by Kiwi demand on NZD/JPY cross amid positive risk sentiment; broadly weaker dollar undertone; firmer commodity prices; Kiwi demand on soft AUD/NZD cross. Daily chart is mixed as MACD is bearish, but stochastics is rising from oversold, bullish parabolic stop-and-reverse signal was hit on Wednesday.
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 0.8415 and the second target at 0.844. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 0.829, the breach of this target will move the pair further downwards and one may expect the second target at 0.8255. The pivot point stands at 0.8335.
Resistance levels:
0.8415
0.844
0.847
Support levels:
0.829
0.8255
0.821
