Overview:
NZD/USD is to consolidate with bearish bias after hitting two-and-a-half-month low 0.8113 Wednesday undermined by positive dollar sentiment and weak commodity prices. But NZD/USD losses tempered by Kiwi demand on soft AUD/NZD cross, NZD/USD interest differential, Kiwi demand on NZD/JPY cross amid reduced risk aversion. Daily chart is negative-biased as MACD & stochastics is bearish, although the latter is at oversold, five- & 15-day moving averages are declining.
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 0.805. The pivot point stands at 0.84. 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 0.835.
Support levels:
0.809
0.805
0.801
Resistance levels:
0.83
0.835
0.8380
