Overview:
NZD/USD is trading in lower range. the rate is supported by weaker dollar sentiment; Kiwi demand on NZD/JPY cross amid positive risk sentiment; Kiwi demand on soft AUD/NZD cross; 1.5-point rise in BNZ Capital-BusinessNZ index for New Zealand's manufacturing activity to 55.7 in October. But Kiwi sentiment dented by weaker-than-expected New Zealand third quarter retail sales (rose 0.3% on quarter versus +0.9% forecast). Daily chart is mixed as MACD is bearish, 5- and 15-day moving averages are falling; but stochastics is turned bullish at oversold.
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 0.821 in view; a breach of this target will move the pair further downwards to 0.819. The pivot point stands at 0.829. 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 0.8345 and the second target at 0.8395.
Support levels:
0.821
0.819
0.8175
Resistance levels:
0.8345
0.8395
0.844
