Overview:
NZD/USD is trading in lower range after hitting eight-day high of 0.8405 on Monday. The rate is undermined by Kiwi sales on soft NZD/JPY cross amid receding investor risk appetite; weaker commodity prices; Kiwi sales on rebounding AUD/NZD cross. But NZD/USD losses are tempered by soft dollar sentiment. Daily chart is mixed as stochastics bullish, five-day moving average is above 15-day MA and advancing; but bearish doji shooting-star candlestick pattern was completed on Monday.
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 0.8255 in view; a breach of this target will move the pair further downwards to 0.8225 The pivot point stands at 0.835. 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 0.841 and the second target at 0.8445.
Support levels:
0.8255
0.8225
0.82
Resistance levels:
0.841
0.8445
0.849
