Overview:
NZD/USD is consolidating with bearish bias after hitting two-week low 0.8150 Thursday. It is undermined by bullish dollar sentiment; contagion from weak regional Asian currencies after Fed's taper. But NZD/USD losses are tempered by positions adjustment before weekend. Daily chart is negative-biased as stochastics is bearish, MACD histogram bars are turning negative; the five-day moving average is falling below 15-day MA.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.815 and the second target at 0.8115. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8265 The breach of this target will move the pair further downwards and one may expect the second target at 0.8285. The pivot point stands at 0.8235.
Resistance levels:
0.8265
0.8285
0.8335
Support levels:
0.815
0.8115
0.8075
