Overview:
NZD/USD is in range-trade after hitting seven-day low 0.8171 on Thursday. The rate is undermined by positive dollar sentiment; contagion from weak Aussie. But NZD/USD losses are tempered by positive dollar sentiment; Kiwi demand on NZD/JPY cross amid positive investor risk appetite and weak yen sentiment; Kiwi demand on soft AUD/NZD cross; firmer commodity prices; positions adjustment before weekend. Daily chart is negative-biased as MACD and stochastics are bearish.
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 0.809 in view; a breach of this target will move the pair further downwards to 0.8025 The pivot point stands at 0.824. 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 0.8275 and the second target at 0.83.
Support levels:
0.809
0.8025
0.7975
Resistance levels:
0.8275
0.83
0.8380
