OvervieW:
NZD/USD is trading in lower range. The rate is undermined by positive dollar sentiment; Kiwi sales on soft NZD/JPY cross amid increased investor risk aversion. Daily chart is negative-biased as MACD and stochastics turned bearish; bearish outside-day-range pattern was completed on Wednesday.
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 0.8165 in view; a breach of this target will move the pair further downwards to 0.8125 The pivot point stands at 0.8261. 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 0.83 and the second target at 0.8380.
Support levels:
0.8165
0.8125
0.8085
Resistance levels:
0.83
0.8380
0.841
