Overview:
NZD/USD is consolidating after hitting a two-month low of 0.8123 Friday. It is undermined by jawboning by the Kiwi strength caused by the Reserve Bank of New Zealand governor assistant John McDermott; contagion from weak Aussie. But NZD/USD downside is limited by Kiwi demand in the NZD/JPY cross amid positive investor risk appetite and weak yen sentiment, Kiwi demand in the soft AUD/NZD cross. Daily chart is negative-biased as MACD and stochastics are bearish; the five-day moving average is falling below the 15-day MA.
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 0.812 in view; a breach of this target will move the pair further downwards to 0.809 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:
0.812
0.809
0.8025
Resistance levels:
0.8275
0.83
0.8380
